Saturday, February 28, 2009

Legal Opinion

In the case before me, the Plaintiff sought to rely on the original term of the contract, had purchased the Digital Photostat Machine on the guarantee that he will be provided a free consumables. Upon the expiration of the contract (1year), the company had come out with a new agreement which had excluded the obligation on the behalf of the vendor to provide a free consumable. The issue arose where the Plaintiff has hesitated to continue the contract by refusing in signing up to the new agreement and claiming the refund of the money paid for the machine.




I will look at the matter involved per se.



First,there’s no clause in the first agreement providing that there is a continuation of the contract agreement after the first agreement had lapsed. The new agreement will come into effect if;


(i) the hirer signing up the agreement or,


(ii) if the new agreement is a supplementary to the first agreement providing that there is a clause in the first agreement that allowing the circumstances.



The issue then arose in the Plaintiff should initiate proceeding by tribunal or civil suit.


Thirdly, whether there is a continuation of the new contract by signing the new agreement. Forthly, whether the Plaintiff can ask for the refund of money paid if he refused to sign the new contract agreement.



In my opinion, i will advice our client to proceed with civil suit. The reasons are :
(i) The matter involves dispute of fact and law
(ii) In court, plaintiff can produce may produce evidences for the judgment
(iii) Plaintiff may ask for damages

Then for the next issue is whether there is a continuation of the new contract by signing the new agreement. In my opinion, if a party signed the agreement, it will bind on them automatically.Party to the contract must honor it.They are presumed to have acquiesced to the terms of the contract agreement. So, if the party objected to one or more of the terms of the agreement, they must perform action on a reasonable period of time before they are barred to do that.



Forthly, whether the Plaintiff can ask for the refund of money paid if he refused to sign the new contract agreement. In my opinion, the money paid by the plaintiff is not refundable. He has no sufficient cause of actions for the claim. The money paid was subjected to the former agreement between the parties. The Plaintiff has no right to ask for the refund of the money unless there are some breaches or defects proven on the company’s part during the continuance of the former agreement up to the expiration which render the contract to be voidable. The law is settled that money paid is not refundable’. Thus, the plaintiff has no right to ask for the refund of the money paid.


I opine that, the Plaintiff has no right to claim for the refund of the money paid. But he may ask to vary the contract. The company may vary or amend the condition in the disputed contract agreement upon request from the majority.



Lastly, if the plaintiff refuse to proceed with the new agreement and wanted to return the goods, he should make a written request on the subject matter accordingly.

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