Business/commercial law essay question and answers

Simiyu wishes to buy his son a car as a birthday present. Wheeler-Dealer offers to sell to Simiyu a second-hand car explaining that the brakes need attention and that he would reduce the price to take account of this. Wheeler-Dealer says that he will take no responsibility for this or other defects. Simiyu accepts the offer without examining the car. If he had done so, he would have seen that the tyres were badly worn out. Simiyu drives away the car but because of defects it fails to negotiate a bend in the road. The car loses control, strikes a wall and is damaged beyond repair.

Advise Simiyu of his rights, if any, against Wheeler-Dealer. (10 marks)


• This problem is based on exemption clauses as well as the conditions implied in sale of good contracts.

• In this case, Wheeler Dealer agreed to sell a second hand car to Simiyu at a particular price but at the same time disclaimed liability for the defective brakes and other defects. Simiyu bought the car but did not subject it to any examination and hence the accident.

• It is apparent that Simiyu acquired the car on “as is where is” basis (caveat emptor) and cannot therefore sue Wheeler-Dealer.

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