business use case modeling

Business law question related to the Parol Evidence Rule. A bit of help would be much appreciated thks!!
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I got a case study to analyse, i’m not quite sure though whether or not the promise is a term of the contract or a collateral contract. Eventhough in my opinion it is a collateral contract.
Marcel wants to buy a used car. He knows the make,model he wants to buy. He visits several dealers who can supply the car he wants. In discussion with one dealer, Yvonne, Marcel is told by her that if he buys the car from her, she would fit the car out with high quality new tyres. He decides to buy the car from her but the written agreement he signs with her makes no mention of this promise. A month later after the purchase is complete he is advised by his motor mechanic that the tyres are of inferior quality. He wants to make a claim against Yvonne. What are the various ways Yvonne’s promise might be categorised and what would marcel have to prove to establish succesful claims in each of these categories? Is Yvonne’s promise a term of the contract or a collateral contract?
please help!! thk
Wow – the number of possible scenarios…
As you say it’s related to the Parol Evidence Rule, lets start with that:
1 – The “promise” could be classified as a term of the contract. Obviously, as it is not in the written agreement, this conclusion offends the Parol Evidence Rule, and Marcel would have to establish that what is written does not contain all the terms of the contract (made more difficult if there’s a typical clause saying the writing does embody all the terms – although still not impossible), and that the promise actually qualifies as being a term of the contract [you should add more here for your own answer].
2 – The “promise” could be a collateral contract, in which Y promises to fit the tyres if M promises to enter a separate contract to buy the car. Here M would have to show that there was a sufficiently clear contract in its own right (proving all the requisite elements of a contract)[and, again, you should add more here from your notes].
3 – The “promise” could be nothing more than that – a bare promise or mere advertising fluff which is unenforceable, in which case, M is stuffed!
4 – The “promise” may not be able to be elevated to the level of either a term of the contract or a collateral contract but it may, nonetheless, be illegal as contrary to statute – such as the Trade Practices Act or its similar state versions (as the car dealer probably is not a company) for misleading and deceptive conduct.
From the limited information given, it seems more likely to be a collateral contract, as the words “if he buys the car from her, she would fit the car out with…tyres” sounds much more like a promise of the tyres in exchange for a promise to buy the car, than being a term of the contract itself. The fact that the promise was made at an earlier time to the formation of the contract also tells against it being a term of the contract. It would perhaps have been different if, at the time of negotiating the contract, Y said something like “I can’t go any lower on price but I will throw in a new set of tyres for that same price”, and then M immediately signed the contract on that basis.
Peepoople – a business model case study challenge
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