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ASSIGNMENT QUESTIONS
INSTRUCTIONS
Answer all tasks of each case study below using the following mandatory approach
I. First, summarise the facts of the case study, identifying the legal principles involved and then state the main problem to be resolved
II. Second, briefly explain the law relating to the legal principles identified in (I) above with reference to relevant case law, statute and any other sources of the English Law.
III. Finally, apply the law relating to these principles to resolve the problem in the given case study
CASE STUDY 1
a) Using examples of relevant case law, distinguished between the following types of contract.
- Bilateral a and Unilateral contracts ii) Expressed and Implied contracts
iii) Void and Voidable contracts
b) Joseph is an antique dealer and one Saturday in November 2010 he put a vase in the window of his shop with a sign which states ‘ exceptional piece of 19thcentury- on offer for £500.00’
Benedict happened to notice the vase as he walk past the shop and thought he would like to have it. Unfortunately, as he was late for an important meeting, he could not go into the shop to buy it, but as soon as his meeting was finished he wrote to Joseph agreeing to buy the vase for the stated price of £ 500. The letter was posted at 11:30am
Later on the same day, Kevin visited Joseph’s shop and said he would like the vase but was only willing to pay £400 for it. Joseph replied that he would accept £450, but Kevin insisted that he was only willing to pay £400 and left the shop. However, on his journey home Kevin realised that £450 was actually a very good price for the vase and he immediately wrote to Joseph agreeing to buy it for the price. His letter was posted at 12:30pm
Just before closing time at 5pm, Daniela came into Joseph’s shop and she also offered £400 for the vase. This time Joseph agreed to sell the vase at that price and Daniela promised to return the following Monday with the money.
On the Monday morning, Joseph received both of the letters from Ben and Kevin before Daniela could arrive to pay and collect the vase.
Task: Analyse each situation above from the point of view of legal elements for the formation of valid contracts, advice Joseph as to his legal relations with Benedict, Kevin and Daniela. Refer to relevant case law to support your argument.
CASE STUDY 2
January 2002, Alexandra, a business consultant, won a lucrative contract with Ball Ltd to provide them with a highly specialised computer system. The terms of the contract required the system to be fully operational by 30th May subject to a penalty of £1,000 for every day’s delay. Alexandra entered into a subcontract with Christine to provide the software for the new system. Christine was to carry out his task by 23rdMay and was to receive £5,000 for his work.
At the end of March, Christine told Alexandra that he would not be able to complete the software in time unless Alexandra agreed to increase his payment by a further £1, 000. Alexandra agreed to pay the increased sum in order to ensure that the job was done on time.
In the event, Christine completed his task by the 16th May and the system was successfully installed before Alex’s contractual deadline with Ball Ltd. However, Alexandra has now refused to make any additional payment beyond the original contractual price.
Task: Analyse the above situation clearly stating the terms of the contract. Advise Christine whether he has any rights in contract law to enforce Alexandra’s promise to pay him an extra £1,000. Refer to the relevant case law to support your argument.
CASE STUDY 3
The details of three potential contracts are set out below.
a) Pamela, a student, offers to pay her brother Joe if he would help her with an assignment. Joe has helped but Pamela refused to pay up.
b) Aisha and her friend Juliet regularly play bingo together. When they started doing so, they both signed a piece of paper to the effect that if either of them ever won more than £200, the money will be shared equally. Aisha has won £5,000 and is refusing to pay any proportion of it to Juliet
c) Makenzie, a taxi driver, agrees to take Michael to the airport. Michael will pay the full fare. Makenzie now says that he would rather go to watch a football match and will not therefore be taking Michael
Task: Analyse each situation from the point of ‘intention to create legal relations’ in contract law and advice in each case the validity of the each contract. Use the relevant cases law to support your argument answer
CASE STUDY 4
Mrs Joel, an accountant, works as sole practitioner. She does not employ any staff. Mrs Joel, has recently won a lucrative contract from Expansion Ltd to undertake all the company’s payroll work. The initial period is for six months, renewable thereafter on a 12-monthly basis as long as the work done by Mrs Joel, is satisfactory.
In order to undertake the work for Expansion Ltd, Mrs Joel, hires a powerful laptop together with dedicated software from Office Supplies Ltd. Mrs Joel, signed a written hire contract with Office Supplies Ltd but she does not read it. It contained a clause stating ‘Office Supplies are not liable for any financial losses or other losses. However caused, occasioned by using hardware of software products supplied by the company’
Neither the computer nor the software operated correctly because of negligent designed and manufacture by the company and as a result Mrs Joel, failed to properly compute National Insurance deductions for the employees of Expansion Ltd. Expansion Ltd consequently refused to renew the contract with Mrs Joel, and she suffered considerable loss in her profits as a result.
Office Supplies Ltd admits that it has been negligence but denies any liability to Mrs Joel, on the basis of the exclusion clause in the contract.
Task: Analyse the situation above and Advice Mrs. Joel, in relation to contract law. Refer to relevant case law to support your argument
CASE STUDY 5
a) Explain the fundamental differences between a liability in tort and contractual liability
b) Sean, a stockbroker, had invited Jane out for dinner for their first date. He made a booking with an award-winning and very expensive Italian restaurant – Gino’s. They were getting along really well, the food was great, they shared a particularly good vintage of South African wine and after the main course, and Sean asked if Jane would like dessert. He was thrilled that she said yes as he likes a woman who will eat on a date. He ordered a cake and coffee for her, and chose chocolate ice cream for himself. As Jane was eating a mouthful of cake, she spluttered and coughed and spat out a decomposed insect. The sight of the decomposed insect caused her to suffer nervous shock and she collapsed. The restaurant bill cost £70, which Sean reluctantly paid in order to avoid any further embarrassment. Soon after, Sean took Jane home as she continued to feel ill. The contamination of the cake caused Jane to suffer gastroenteritis for several days. Both Jane and Sean were mortified at the turn of events and their potential romance did not recover. However, as they are both business people they decided to be practical and consider any remedy they may have against restaurant.
Task: Analyse the above situation from the point of view of ‘tort of negligence’ and advice Sean and Jane. Refer to relevant cases law to support your argument
CASE STUDY 6
Angelina approached Christian Auctioneers to give her a free valuation of some antique furniture that she had recently inherited from her grandmother and was considering selling at auction. Christian sent their employee Brad, a furniture expert, to provide the valuation at Angelina’s flat.
Having had the furniture valued, Angelina asked Brad how much a painting that she had also inherited was worth. Brad, who had been instructed by Christian not to give advice outside his field of expertise, looked at the painting and pronounced it to be of little value, adding, ‘I may not know much about art but I know what I like – and it’s not this!’
Shortly afterwards Angelina sold the painting privately for £100 to an elderly neighbour who thought it would look fantastic in her sitting room. A few weeks later, Angelina read the following headline in her local paper: ‘Pensioner hits jackpot with rare Rembrandt for £100!’ The painting that Angelina had sold was pictured underneath.
Task: Using the legal Principles of ‘professional negligence misstatement’ and ‘vicarious liability’, advice Angelina whether she has any rights and remedies against Brad and Christian Auctioneers in connection with the incorrect advice given to her about the painting. Refer to relevant cases law to support your argument.
