Law – Seminar – Contract Law U.K.

SEM 5 Questions. More on agreement (assessed seminar)

1.?On 1 September Alex writes a letter to Paula as follows.
??I offer to sell you my car for 2000. I shall leave the offer open until
??8 September. Please let me know in writing, on or before this date,
??whether you will accept this offer.

?Paula receives Alexs letter on 2 September. She immediately writes a letter to Alex stating:
??I am interested in buying your car for 2000. However, can I pay you
??1,500 now and the balance 500 next month?

?When Alex receives this letter on 4 September he does not reply. Instead he sells his car to Roy who can afford to pay him all the money at once.

?On 7 September, Paula sends a letter to Alex by first class recorded delivery mail stating that she can afford to pay the whole of the 2000 and encloses a cheque for the amount. Owing to the negligence of the Post Office, this letter is delivered to Alex only on 9 September.

?Advise Paula on the legal position.

1.?What would you write by way of an introduction if you were producing a full written answer to this question? (The guide on Answering Problem Questions in Law at the end of this seminar booklet may provide some inspiration)
2.?Would Alexs letter of 1 September constitute an offer? State the law on this point, refer to any relevant cases and then apply the legal principles to the first paragraph.
3.?Is there any other issue in the first paragraph?
4.?What is the ratio in Routledge v. Grant?
5.?What is the ratio of Mountford v. Scott?
6.?Apply the above legal principles to the first paragraph.
7.?What is the ratio of Holwell Securities Ltd. v. Hughes?
8.?Apply the above legal principle to the first paragraph.
9.?What is the ratio of Hyde v. Wrench?
10.?What is the ratio of Stevenson v. McLean?
11.?Apply the above legal principles to the second paragraph.
12.?What is the ratio of Felthouse v. Bindley?
13.?Apply the above legal principles to the third paragraph.
14.?What is the ratio of Adams v. Lindsell?
15.?What is the ratio of Household Fire Insurance Co. v. Grant?
16.?Apply the above legal principles to the 4th paragraph.
17.?Which case would you cite as authority for the proposition that acceptance is not complete on posting when the offeror required actual communication of the acceptance?
18.?Apply the above principles to advise Paula, bearing in mind Alexs letter.

SEM 7 Queston – Consideration (assessed seminar)

Further reading: ?Halson, Sailors, sub-contractors and consideration (1990) LQR 106 (Apr) 183-185 (this is a short case note on Williams v. Roffey. Full text access to this note should be available on www.westlaw.co.uk)

1.?Answer ALL parts.

?Advise Diana who has recently made the following promises:
?(a)?To John, her next door neighbour, 50 for repairing Dianas fence blown over in a storm, while Diana was away on holiday two months ago;
1. ?What are the main legal issues in this problem?
2. ?How would you define past consideration?
3. ?Which cases would you cite as authorities for the legal principle that generally, past consideration is not sufficient consideration to buy the promisor\’s promise?
4. ?If a promisee wishes to rely on the Lampleigh v. Brathwait exception as to past consideration, what conditions must s/he prove?
5. ?Apply the legal principles to advise Diana.

?(b)?To Bee Gardening Services (BGS), who were already under a contract to mow her lawn for the summer, an extra 50 if BGS ensures that the lawn is mowed regularly throughout the summer;
?1. ?What are the main legal issues in this problem?
?2. ?If Diana wishes to argue that in mowing the lawn regularly BGS was merely fulfilling their existing contractual duty, which cases should she cite as authorities?
?3. ?If BGS wish to argue that in mowing the lawn regularly they were exceeding their contractual duty, which cases should they cite as authorities?
??4. ?What are the legal principles in these cases?
?5. ?Apply the legal principles to advise Diana.

?(c)?To Mandy, a local policewoman, 100 for arresting a burglar as he was leaving Dianas house with a valuable painting under his arm.
?1. ?What are the main legal issues in this problem?
?2. ?If Diana wishes to argue that Mandy was only performing her legal duty, which case should she cite as an authority?
?3. ?If Mandy wishes to argue that she was exceeding her legal duty, which cases should she cite as authorities?
?4. ?What are the legal principles in these cases?
?5. ?Apply the legal principles to advise Diana.

?Advise Diana to what extent, if at all, she is legally bound by the above agreements.

2.?Answer BOTH parts.

?(a)?Much difficulty arises in determining whether a person who does, or promises to do, what he was already legally bound to do thereby provided consideration for a promise made to him. (Treitel, The Law of Contract)

??Explain and illustrate this statement with reference to decided cases.
??1. ?Which cases would you consider in answering this question?
??2. ?How would you answer this question?

?(b)?Mary, who was planning a dinner party for her fortieth birthday, ordered a dining table and a set of twelve chairs from Bernard, a carpenter. The price was agreed at 1,000 and it was further agreed that the furniture was to be delivered by 1 August. After the agreement was made Bernard discovered that the price of the materials was much more than he had estimated. Bernard then demanded 500 more in order to deliver the furniture by the agreed date. Mary promised to pay him the extra 500 if Bernard delivered the furniture by the agreed date. He delivered the furniture on the agreed date. However, Mary is refusing to pay him the extra money.

??Advise Bernard as to whether he would be successful in obtaining the extra money if he brings a court action against Mary.
1.?What are the main legal issues in this problem?
2.?If Mary wishes to argue that Bernard was merely performing his existing contractual duty, which cases should she cite as authorities?
3.?If Bernard wishes to argue that he exceeded his contractual duty, which cases should he cite as authorities?
4.?What are the legal principles in these cases?
5.?Apply the legal principles to advise Bernard.

Sem 8 Questions – Part payment of debts and promissory estoppel (assessed seminar)

Further Reading: ?Blair &Hird, Minding your business Williams v. Roffey re-visited: consideration reconsidered (1999) JBL 254 (JBL = Journal of Business Law, full text access should be available on Westlaw)

1.?John borrowed 500 from Alan on 1 May, promising to repay the money on 1 August. On 1 June Johns employer gave him one months notice to terminate his employment. Consider the legal situation in the following alternative circumstances:
?(i)?On 1 August John gives a cheque for 300 to Alan and says that he cannot afford to pay more as he has lost his job. Alan accepts the cheque in full satisfaction of the debt. Is Alan bound by his promise?
1.?What are the main legal issues in this problem?
2.?If John wishes to argue that by making the part-payment by cheque he has given sufficient consideration to buy Alan\’s promise to forget about the balance, which case should he cite as authority?
3. ?If Alan wishes to argue that the part-payment by cheque is not sufficient consideration to buy his promise to forget about the balance, which case should he cite as authority?
??4.?Apply the legal principles to the problem.

?(ii)?On 1 August John offers Alan some law books worth 300. Alan takes the law books and promises to forget about the 500 debt. Is Alan bound by his promise?
1. ?What is the main legal issue in this problem?
?2.?If John wishes to argue that giving the law books is sufficient satisfaction of the whole debt, which case should he cite as authority?
?3.Apply the legal principles to the problem.

?(iii)?On 1 August John and his father Tom meet Alan. After explaining that John has lost his job, Tom gives a cheque for 300 to Alan and Alan promises to forget about the balance. Is he bound by his promise?
1.?What is the main legal issue in this problem?
2.?If John wishes to argue that Alan is bound by his promise as his father made the part payment, which case should he cite as authority?
3.?Apply the legal principles to the problem.

(iv)??On 1 August John pays 300 to Alan and Alan promises to forget about the balance. On 2 August Johns former employer sends him a cheque for 1000 as a golden handshake. John immediately makes a booking to go to the South of France on a late summer holiday. On 5 August Alan gets to know about Johns golden handshake and demands the balance of the debt. Is he entitled to go back on his promise?

1.What are the main legal issues in this problem?
2. If Alan wishes to argue that he is not bound by his promise to forget about the balance, which cases should he cite as authorities?
3.If John wishes to plead the defence of promissory estoppel, which cases should he cite as authorities?
4.If John wishes to plead the defence of promissory estoppel, which conditions should he prove?
5.Apply the legal principles to the problem

SEM 9 Questions
Further reading:
Dean, Removing a Blot on the Landscape The Reform of the Doctrine of Privity (2000) Journal of Business Law 143 (full text access available on Westlaw)
Macmillan, A birthday present for Lord Denning (2000) 63 MLR 721
Burrows, Contracts (Rights of Third Parties) Act 1999 and its implications for commercial contracts (2000) LMCLQ 540

1. ?In Tweddle v. Atkinson (1861) 1 B. & S. 393 why did the claimant fail in his action for breach of contract brought against his father-in-law\’s estate? Please give the TWO reasons given by the court.
2. ?Viscount Haldane in Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd. [1915] A.C. 847 stated: \’in the law of England certain principles are fundamental.\’ What are the THREE principles he mentioned?
3. ?State some statutory provisions creating exceptions where third parties acquire the right to sue.
4 ?What was the reason that in Southern Water Authority v. Carey [1985] 2 All ER 1077 the third party could not take advantage of the limitation clause in the main contract?
5. ?In Lockett v. Charles [1938] 4 All ER 170 on what basis did the claimant succeed when she sued the restaurant in contract?
6. ?In Jackson v. Horizon Holidays Ltd. [1975] 1 WLR 1468 what reason did Lord Denning M.R. give for concluding that Mr. Jackson was entitled to sue for damages not only on his own behalf but also on behalf of his family?
7. ?In Lindens Gardens Trust Ltd v. Lenesta Sludge Disposals Ltd. and St. Martins Property Corp. Ltd. v. Sir Robert McAlpine& Sons Ltd. [1993] 3 All ER 417 on what basis was the original owner of the buildings permitted to sue for damages on behalf of the third party to whom the building works had been assigned and who had suffered loss?
8. ?In Darlington Borough Council v. Wiltshire Northern Ltd. [1995] 3 All ER 895 the Court of Appeal held that the Council to whom the contractual rights had been assigned was entitled to substantial damages. Which case did they cite as an authority?
9. ?In Shanklin Pier Ltd. v. Detel Products Ltd. [1951] 2 K.B. 854 on what basis did the court allow Shanklin Pier Ltd to successfully sue Detel?
10. ?The courts, on some occasions, regarded the promisee as a trustee of the contractual rights of the third party (beneficiary). State TWO cases where the third party succeed on the basis of the trust concept?
11. ?In Beswick v. Beswick [1968] A.C. 58 what remedy was awarded to Mrs. Beswick?
12. ?State TWO cases where the claimant able to avoid the Privity of Contract rule by suing in Tort?
13. ?S.1(1) of the Contracts (Rights of Third Parties) Act 1999 gives a third party the right to enforce a contractual term if one of two conditions is satisfied. What are these two conditions?
14.?If the facts of Tweddle v Atkinson came before a court today, would the courts decision be affected by the Contracts (Rights of Third Parties) Act 1999? Give reasons for your answer.

More Questions on Privity

1. ?A husband and wife, Jim and Lorna, had booked a holiday cottage in France from 1 June to 8 June. On 1 March Jim went into the offices of Speedlink Ltd and booked a cross-channel ferry to take him, his wife, two children and their car from England to France on 1 June. When Jim and his family went to board the ferry on 1 June they were told that they could not get a place on the ferry until 3 June. The employee of Speedlink Ltd who had dealt with Jim had forgotten to record Jims booking in the Speedlink Ltd computer and as this was the start of the half-term holiday the ferry spaces were all taken up.

Jim and Lorna are disappointed at having their holiday in France cut short. Furthermore, the family had to stay in a hotel until they could board the ferry on 3 June, and Lorna has had to pay the hotel bills, as Jim is unemployed.

Advise Lorna and Jim.

SEM 10
Pleases also revise intention to create legal relations for question 1 below.
1. Answer BOTH parts.
??Paul rings up his friend Jill and asks her whether she can sew him some table linen which he wants to give to his mother as a present. Jill agrees and Paul says We can discuss the price when we meet at Chus party next week. Jill immediately telephones the manager of Top Linens, a local shop selling fabrics, and orders material similar to that which she had bought from them a few weeks ago. Jill and the manager do not discuss the price.

??Paul goes to the shops a few days later and spots a table linen set at a very cheap price. He writes a note to Jill saying that: there is no need for you to sew any table linen as I have managed to buy a set.

?Advise Jill
i. ?whether she will be successful in an action for breach of contract against Paul.
ii. ?whether she might be liable for breach of contract if she cancels the order which she has given to Top Linens.

1. ?What are the legal issues most relevant to a possible action by Jill against Paul?

2. ?Which authorities are the most relevant to the main issues?

3. ?What are the legal principles in these authorities?

4. ?Apply the legal principles to advise Jill on an action against Paul.

5. ?What are the legal issues most relevant in discussing Jill\’s liability to Top Linens?

6. ?Which authorities are the most relevant to Jill\’s liability to Top Linens?

7. ?What are the legal principles in these authorities?

8. ?Apply the legal principles to advise Jill on her liability to Top Linens.

???????????PTO
Terms and representations

1. ?What are the tests for deciding whether a statement is a representation or a term?
2.?The parol evidence rule applies to written contracts and prevents the parties adducing extrinsic evidence to add to, vary or contradict the writing. Poole, Casebook on Contract. State some exceptions to this rule.
3. ?Tom, a yachtsman, entered into a written agreement with the Seadog Marina Company Ltd. By this agreement, Tom was entitled to bring his 30 foot yacht into a specific berth and use the berth for six months. The waters in the yacht marina were tidal and Tom brought his yacht into the allotted berth at high tide. As the tide fell, the yacht came to rest on a metal obstruction which caused damage to the hull of the yacht. The repair bill was 5000. Advise Tom. What is the main legal issue in the problem?
4. ?Which cases are most relevant to the main legal issue in the problem between Tom and Seadog Marina?
5. ?What are the principles in these cases?
6. ?Apply the principles to solve the problem.

7.?(There) are two broad categories of implied terms. The first category comprehends all those relationships which are of common occurrence, such as the relationship of seller and buyer, owner and hirer, master and servant and so forth. In all those relationships the courts have implied terms. In such relationships the problem is not solved by asking: what did the parties intend? Or would they have unhesitatingly agreed to it if asked? It is to be solved by asking: has the law already defined the obligation or the content of it? If so, let it be followed. If not, look to see what would be reasonable in the general run of such cases and then say what the obligation shall be. The House of Lords in Liverpool City Council v. Irwin went through that very process, per Lord Denning in Shell U.K. Ltd. v. Lostock Garage Ltd [1977]. Explain with reference to decided cases whether or not this statement is good law.
1. ?What do you understand by this statement?
2. ?What are the relevant cases?
3. ?What are the principles in these cases?
4. ?Apply the principles to answer the question.

8.?Read the case of A-G of Belize v Belize Telecom Ltd [2009] UKPC 10 and consider how far this decision has altered the traditional approaches to implied terms.

9.?To what extent, if any, has the Consumer Rights Act 2015 affected the range and content of statutory implied terms? ??

Please answer all the questions.