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Contract Existance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Contract Existance

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by MikeLittle.
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  • May 24, 2020 at 11:59 am #571737
    utsavlt
    Participant
    • Topics: 31
    • Replies: 4
    • ☆

    You are at the train station waiting for your train to arrive. You see a vending machine from where you can buy snacks and chips for $3.50. Posted on the machine is a sign saying: “Property of XYZ Vendsolutions Pty Ltd”. You insert the coins required into the machine and out comes a packet of chips. However, when you open the packet of chips, you find bits of plastic inside and you don’t want to eat the chips. You want your money back.

    I got this scenario online and I wanted to ask tutor who do we have a contract here, with the vending machine company or that company manufacturing chip and what is the basis so that we can say this is a legally binding contract?

    May 24, 2020 at 4:08 pm #571754
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23314
    • ☆☆☆☆☆

    My initial thinking is that the chip manufacturer is liable in the same situation that the ginger beer manufacturer was liable in the case Donohue v Stevenson

    Check out that case and see the similarities

    OK?

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