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until 
something goes wrong
.
When one party to a contract fails to carry out his part of the agreement, the other party can take legal 
action against them for 
breach of contract
. So if a business has a customer who is failing to pay, they 
can take them to court. 
BPP Tutor Toolkit Copy

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CHAPTER 2
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THE BUSINESS ENVIRONMENT 
 
35 
Where one party makes a misrepresentation to the other, the contract is considered 
void. 
For example, A 
sells goods to B, who sells them on to C. B then fails to pay A for the goods and disappears without 
trace. If A can demonstrate that they were genuinely mistaken as to the identity of B and would not have 
dealt with them had they known who B really was, then A can recover the goods which were subject to 
the original contract from C. This is because the law takes the view in such a situation that the original 
contract between A and B was no contract at all. Therefore C, who was an innocent third party acting in 
good faith, has to return the goods to A and either bear the loss or find and sue B. 
6.2 Sale of goods and services 
An important area of contract law is the law concerning the 
sale of goods
. UK legislation also covers 
contracts where the 
supply of services 
is the major part of the contract. For example, contracts of repair, 
where the supply of goods may be incidental to the provision of a service. 
Imagine that you are about to enter into a contract for the purchase of some goods. What might you be 
concerned about?

You may want the goods delivered for a particular occasion or 
date
. 

Are the goods stolen, ie does the seller have a 
right to sell the goods
? 

You would expect the goods to be the same type and quality as the description or any sample.

The goods should be of