Business Law

Owain and Paul are work colleagues who both have an interest in watches. They decided to go into business together selling watches and open a shop, Tick-Tocks. They engaged Klapp Shopfitters Ltd to outfit the shop. Klapp agreed to have the work completed by December 5th. On the 15th November, Klapp inform Paul and Owain that the company would need to hire extra workmen in order to complete the work and that unless Paul and Owain agreed to pay an extra 2,000, the work would not be completed by December 5th . In their discussion Klapp pointed out that any delay would mean Paul and Owain missing out on the busy Christmas shopping period and losing out financially. Both Paul and Owain reluctantly agreed to pay the extra money.
Paul and Owains friend, Brian, volunteered to help carry out repairs and when finished, Paul and Owain promised to pay him 100.
On the day the shop opened the first customer was Elle who entered the shop and leant against the freshly painted counter. Elles dress ended up covered in paint and was ruined beyond repair. Elle told Jean, the assistant , that she wanted compensation. Jean smiled at Elle and told her to read the notice behind the door through which Elle entered the shop. The sign read, Neither Tick Tocks nor any of its management or staff will be responsible for any loss or damage to customers property howsoever caused.
The business is not flourishing as well as Paul and Owain would have liked and so they placed an advertisement in the local evening paper on the Friday to encourage new customers. The advertisement read, Breguet only 1,000. Offer open Saturday for one day only.
Ahmed saw the advertisement on the Friday and posted a letter that day saying he would purchase the watch.
Jane, wished to buy the watch as a gift for her husband and called into the shop first thing Saturday morning. She arrived at the shop minutes after Chub, who said he would buy the watch for 900. Paul said he wanted to think over the offer. Chubb said if he had heard nothing by Sunday he would assume he had bought it. Paul agreed to this.
Jane offered Paul 1,100 cash for the watch and Paul sold her the watch. Paul telephoned Chub to tell him he had sold the watch but as there was no reply and he left a message on his voicemail revoking his offer. Chub worked in a casino and was not allowed to have access to a telephone during work and he therefore did not receive the message until he left work, Sunday morning.
As business is not flourishing Paul and Owain did not pay Brian the money they promised him.
Advise , Paul and Owain as to their contractual liabilities, if any.
Word Limit: 1,500 words. Note Penalties will be incurred for exceeding the word limit.

OSCOLA Referencing as this is a Business law Assignment

Focus attention on following areas and ask yourself the following questions
Offer: can an advertisement amount to an offer? what is a counter-offer?
Acceptance: In a contract when does acceptance take place? what are the rules relating to this area? when does revocation take place?
Consideration: Look at the rules relating to consideration with to regard to the performance of an existing duty – cases such as stilk vs myrick.
look also past consideration.
exclusion clauses: what are the rules relating to exclusion
clauses – ask if the clause is incorporated. also ask does the clause apply to what has happened?