Question about business law: A. What is a force majeure clause? B. Tony signed a
ID: 380047 • Letter: Q
Question
Question about business law:
A. What is a force majeure clause?
B. Tony signed a contract agreeing to purchase a used, high-powered boat for $10,000. Prior to signing the contract, the sales representative explained that the boat motor was guaranteed for six months for all labor and parts. The written contract contained nothing about the warranty; however, it did have an integration clause in it. Tony had problems with the boat motor, causing expensive repairs. Tony returned the boat to the sales representative for the repairs, only to learn the salesman denied knowing anything about a six-month warranty. If Tony sues, discuss the likely outcome.
Explanation / Answer
A. Force majeure clause is a contract provision that allow a party to suspend the performance of its obligations when some of the circumstances are beyond their control , illegal or impossible.
b. According to the case this is an incomplete contract, fraud and misrepresentation in the contract. Tony must argue about the warranty clause that is naturally written in the sales contract . tony also claim that he was induced into entering into the contract because the contact was misrepresented by the salesman. he would also arguing about the exception of the basic rule.
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