Transamerica Oil Corporation V. Lynes

1868 Words8 Pages
In the United States, the laws that govern the execution of contracts state that all competent parties of a contractual agreement be held liable for negligence or failure to uphold their contractual obligations. This is true for agreements that are made verbally, or through express warranty as well as written contracts. In some states, advertisements may be considered a form of express warranty. In the case of Transamerica Oil Corporation v. Lynes, Transamerica Oil Corporation was awarded damages for breach of express warranty based on the failure of production injection packers purchased from Lynes; the case was reversed and remanded upon appeal. An express warranty can be looked at as a type of contract, and can hold up in a court of law in the same manner. In comparing a contract and an express warranty, we find that the same elements hold true for both. In Essentials of Business Law, Anthony Liuzo states, “To be legally enforceable, a contract must contain six elements: (1) offer and acceptance, (2) mutual agreement, (3) consideration, (4) competent parties, (5) legality of purpose, and (6) proper form” (Liuzzo, 2010, pp. 79-80). In the purchase of the injection packers, all of these elements are present, and so this purchase agreement can be looked at as a contractual agreement. The seller made an offer to sell its products, and after learning that the products would satisfy his needs the buyer accepted this offer (constituting offer and acceptance). The two parties agreed that this purchase would take place (constituting mutual agreement). A price was agreed upon and the buyer paid the seller (constituting consideration). Both parties were of legal age to enter into a contract and were of sound mind (constituting competent parties). The seller was operating under a legal business license and nothing was illegal about the product or the selling of

More about Transamerica Oil Corporation V. Lynes

Open Document