MAC manufactures and installs insulated window-frame units. Installation comprises about 15% of MAC’s total price for the units. Wong, a commercial builder, saw a MAC advertisement and mailed an order for 30 window frames, at $100 per frame, for a total order of $3000. He also wrote on his order, “Must have your guarantee of installation within 15 days due to construction deadlines.”
MAC immediately sent Wong an “Acknowledgment of Order,” listing the windows and price as per Wong’s order, and including a $200 shipping charge. Shipping costs are customarily borne by the buyer of window-frame units. At the bottom of the MAC form was printed the following: “Installation guaranteed within 60 days.” Also printed in bold and conspicuous type was the following: “All warranties of merchantability and fitness are hereby expressly disclaimed.” Finally, the form stated, “Contract of Sale Subject to Terms Contained Herein.”
MAC installed the windows 55 days after the order was placed and Wong incurred several delay-related expenses. MAC \later submitted a bill for the full amount shown on the “Acknowledgment of Order” form. Wong refused to pay the $200 shipping charges. He also discovered that because of a manufacturing defect, the glass in the windows did not fit snugly, permitting rain to leak through.
MAC sued Wong for the full price shown on the “Acknowledgment of Order” form. Wong counterclaimed against MAC for damages resulting from the delayed installation and unmerchantable quality of the windows.
How should the court rule on MAC’s and Wong’s actions? Discuss
MAC's advertisement is an invitation to treat (ITT) similiar case Partridge v. Crittenden
Wong's order is an offer made to MAC.~This is offer because it is not a requests for more information as Wong has placed order.- His order can be said 2 have pre-conditions that must be satisfied by MAC before accepting the offer. The offer is made subject to the condition and if its not satisfied, the offer may lapse (similiar case Financings Ltd v. Stimson)
On the fact, “Installation guaranteed within 60 days.” Wong only requested that installation be guaranteed within 15 days, this is one important point to the contract but can be considered as condition satisfied as 15 days falls within the 60 day period
MAC's "Acknowledgement of Order" = acceptance- see case Brogden v. Metropolitan Rail Co
Offer + acceptance +legality + consideration = contract; whereby both parties i.e. MAC and Wong will b bound by it. Therefore in this case there was a valid contract
Offer + acceptance +legality + consideration = contract; whereby both parties i.e. MAC and Wong will b bound by it. Therefore in this case there was a valid contract
Wong have to pay the $200 shipping fee as it is clearly stated in the contract. However as for the defect, Wong could sue MAC for breach of contract as the products was found to have defects. Wong is allowed to file a case against MAC as their product have caused loss/damage to him. this is an exemption clause where MAC seeking to exclude his liability in the event of any default.the exemption clause by MAC seeking to exclude his liability in case of any default can be argued up based on Unfair Contract Terms Act 1977 (UCTA) and may end up helping Mr Wong to win the suit.
