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PURCHASING PRINCIPLES AND LAW

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Anita, a retired nurse, recently bought a ginormous house on the West coast of Scotland. The crime rate in the remote village is relatively high. The power supply is not regular and the voltage is very low. Anita is particularly concerned about the local crime rate. She is considering buying a burglar alarm system from Bill who tells her that it still operates even if the mains electricity supply is cut off. Bill genuinely believes this to be true anda week later Anita signs a contract for Bill to install the system which makes no mention of what would happen if the electricity supply fails. D...

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Question Preview:

Anita, a retired nurse, recently bought a ginormous house on the West coast of Scotland. The crime rate in the remote village is relatively high. The power supply is not regular and the voltage is very low. Anita is particularly concerned about the local crime rate. She is considering buying a burglar alarm system from Bill who tells her that it still operates even if the mains electricity supply is cut off. Bill genuinely believes this to be true anda week later Anita signs a contract for Bill to install the system which makes no mention of what would happen if the electricity supply fails. During that week Bill discovers that the system will not operate during a power cut but, having forgotten that he ever discussed the matter with Anita, doesn't say anything more about it. Having paid £800 for the system, Anita is burgled two weeks later during a power cut and £5,000 worth of jewelry is stolen. There are other systems on the market which are not dependent on the mains supply but all cost over £1,200.question with the aid of relevant legal instruments and case law, advise Anita1) On whether Bill’s statement raises a question either of representation (25marks) or of a term of the contract (25 marks),2) On whether the raised issue is actionable (25 marks) and, where it is, on possible remedy (25 marks).

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In this paper, we have analyzed the importance of the contractual terms and condition and how it is important to check the contract terms before signing it so that it can be ensured that any issue in future will not be generated which is not in the scope of the contractual term. Same thing happened with the Anita and she only relied on the verbal commitment and did not verify the contract terms before proceeding with the installation of security alarm system it her house and signing the contract. What is the possible legal remedy can be for this case is discussed in this paper. This paper also discuss whether Anita is eligible to file a case in the court so that it can be ensured that her losses can be compensated.

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