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Contract law becomes relevant if you have entered into some “contractual relationship” with another person; that is, both sides agree to give each other an item or service that would benefit the other person. Common forms of contracts we see in everyday life include sales agreements, manufacturing agreements, confidentiality agreements, loan agreements, and privacy terms and conditions.
Sally bought a stuffed animal for her child from a store. According to the packaging, the stuffed animal was able to “sing” upon pressing a button. She put in the batteries and gave the stuffed animal to her child. However, when her child pressed the button, not only did
the stuffed animal stay silent (which made her child cry), but upon more careful inspection, Sally also discovered a small sharp needle inside the stuffed animal.
When Sally bought the stuffed animal, the store owner entered into a contractual relationship with Sally. In this case, the store owner failed to perform the contractual duty under the Sales of Goods Ordinance (Cap. 26) of selling goods corresponding to its description (ability to ‘sing’) and with a ‘merchantable quality’ (no defects). Thus, Sally has a legal basis to claim a refund, and if the child was hurt by the needle, she could also claim against the store owner for damages resulting from the breach of contract, such as medical fees incurred to treat the child for injury inflicted by the needle.
Disclaimer: The article is for reference only and should not be construed or relied on as legal advice in whatsoever manner. Please engage a solicitor to seek formal legal advice. LegalClarus does not provide legal advice.