Friday, July 4, 2008

Great Bright Limited v. Triangle Motors Limited

Because of my Law assignment, I have a chance to search the cases of Contract Law, and finally my kind classmate gave me a nice case which is "so relevant" to my case. And I turned out revealed that law is so much helpful to me, or doubtlessly helpful to everyone who has a lot of curiosities on the business world.

The fact (a very brief one or sometimes omission :) for Great Bright Limited v Triangle Motors Limited, Mr. Wong (Director of Great Bright Limited, the Plaintiff) entered contracts with Lin, a sales rep. of Triangle Motors Limited (the Defendant) to procure 4 vehicles to importing to PRC. Mr. Wong intended to import the vehicles to PRC border before 1 Oct 1994 to avoid the custom duty levied for car import. Lin assured to Mr. Wong the vehicles would be properly imported to PRC before that date which Mr. Wong believed in it and placed the orders with Lin. Mr. Wong paid the considerations for the vehicles and carrying fees on time. However, Triangle Motors Limited failed to deliver all of the vehicles before 1 Oct 1994, and stored 3 vehicles which are failed to be delivered due to traffic congestion. As the orders stated nothing about the delivery date and place, the Defendant claimed that their obligations had been performed.

The judge hold that Lin, the Sales Representative of the Defendant orally assured Mr. Wong that delivery to the border would be done before 01 Oct 1994 which is a decisive influence on the transaction to Mr. Wong. Such statement made by Lin is binding on his company - Triangle Motors Limited. It takes the priority over any printed condition.

In conclusion, oral committment is much more legally effectively than the written ones. So taking a good care of your commitment is crucial.

No comments: