English Law of Contract Essay Example | Topics and Well Written Essays - 500 words

English Law of Contract - Essay Example The government of Zanzibar wanted to purchase an executive jet for the use of their president. In the year 1992, a contract was signed between the Government, British Aerospace, and CIBC Finance PLC. After using the plane, it was found to be defective. The government returned it back to British Aerospace for repairing it. But even after repair, the fault continued. The government stopped lease payments. CIBC took possession of the plane and sold it, in order to recover the cost incurred. The government of Zanzibar had initiated an action against British Aerospace accusing false representation of the airworthiness, reliability and defect-free nature of the plane, as claimed by British Aerospace. They wanted to cancel the contract or alternatively, to get compensation of the damages, according to the English Misrepresentation Act, 1967. Subsequently, British Aerospace claimed that restoring the jet to its original position and return it back to the Government cannot be possible because it had already been sold. (England and Wales High Court Decisions. 2000) The government of Zanzibar proposed that the contract signed between Government, British Aerospace had hidden misrepresentation of claims made by British Aerospace. The untrue statement about was made by British Aerospace. According to English Misrepresentation Act 1967, British Aerospace had disclosed half-truth, and thus the contract is voidable. The government claimed that the contract with British Aerospace is subjected to fraudulent misrepresentation (deceit). In this case, the Government claimed that rescission must be made, and they appealed to rescind the contract and put them back to the pre-contractual position. It could be by returning the plane to the Government in its original position or compensation for damages due to misrepresentation. (Weitzenboeck, 2012)