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Contract Exam 2023 A

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34 views4 pages

Contract Exam 2023 A

Uploaded by

javierhengchi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LA1040 May B1

CertHE COMMON LAW


LLB
BSc DEGREES WITH LAW
GradDip COMMERCIAL LAW

Contract law

Wednesday 3 May 2023

You have FOUR HOURS AND 15 MINUTES in which to write your answers.

You must answer FOUR of the following EIGHT questions.

You must answer all parts of a question unless otherwise stated.

© University of London 2023

Page 1 of 4
1. Isaac owns a shop selling fishing supplies. He places an advert in his
shop window, “Five handmade fishing rods for sale: each £1,000.
Available only to the first five people who pay me this amount by
Saturday 1 May”. In his window he also displays a box containing ten
fishing knives. The box has a sticker on it which reads, “Handmade
knives - £200 each”.

Devi sends Isaac £1,000 in the post on Tuesday 27 April and says she
will collect the rod on Monday 3 May. The letter gets lost in the post.

On Thursday 29 April Charles telephones Isaac and asks if he can buy


two rods for £1,500. Isaac says he wants to think about Charles’ offer.
Later that day, Isaac telephones Charles and leaves a message saying
“I am happy to sell you two rods but the price must be £1,700”.

On 30 April when Isaac does not hear from Charles or receive any other
offers for the rods, he places a notice in his shop window stating that the
handmade rods have been withdrawn from sale.

On 1 May Charles goes to Isaac’s shop with £1,700. He is in a rush and


so does not read the notice in the window and asks for two rods for
£1,700, which Isaac declines. Charles says, “Okay, I’ll give you the
£2,000” but Isaac explains the rods are no longer for sale and points to
the notice in his window. At the same time, Bronwin enters the shop to
buy a knife. Isaac explains that he now realises that it was illegal to sell
the kind of knives he has in his window and so refuses to sell one to
Bronwin.

Advise Isaac.

2. Discuss, with reference to relevant cases, whether there is an intention


to create legal relations in each of the following circumstances:

(a) a husband seeks to enforce a promise made by his wife to pay him
£2,000 per month while she works abroad;

(b) a parent company sends a letter to a bank which is proposing to lend


money to its subsidiary stating “its policy is to ensure that its
subsidiary is always able to meet its liabilities to the bank”;

(c) an agreement between friends going to watch horseracing that if


anyone bets on a horse and wins then the winnings will be shared
equally between them;

(d) a rich businesswoman has lunch with her financial advisor and offers
to pay him £1 million if the shares in her business double in value in
the next two months;

(e) when a husband and wife agree to separate and live apart the
husband agrees to pay the rent of the flat his wife moves into; and

(f) a mother persuades her son to study to become a lawyer by


promising to pay the rent of his flat during his law degree.

Page 2 of 4
3. (a) There is a burglary at Lady Muck’s castle and a valuable painting
is stolen. Lady Muck offers a reward of £10,000 for its safe return.

Discuss Lady Muck’s liability to pay the reward in each of the


following alternative circumstances:

(i) the painting is returned by Detective Regan who is


investigating the case; or

(ii) the painting is returned by Marlow, a private investigator


employed by the company that insures the painting for Lady
Muck.

(b) ‘Past consideration is never good consideration.’

Discuss.

4. Bob, a builder, requires a crane for a project renovating a warehouse.


On 1 January Bob approaches Wendy who has a crane hire company.
Bob explains that he needs a crane capable of lifting five tonnes. Wendy
recommends the Lofty 2 model. She explains to Bob that she has only
recently taken over the crane hire business from her father. She
recommends that Bob should confirm the lifting capacity of the Lofty 2
with her father and in the crane’s manual which she gives to Bob. Bob
takes the manual away but does not read it and he does not consult
Wendy’s father. If he had read the manual, he would have seen that the
stated lifting capacity of the Lofty 2 crane is five tonnes.

On 1 February Wendy receives an email from the manufacturer of the


Lofty 2 crane pointing out that the lifting capacity is misstated in the
crane’s manual and that it is three, not five, tonnes. Wendy remembers
her conversation with Bob but thinks he no longer wants to hire the
crane.

On 1 March Bob hires the Lofty 2 crane from Wendy for a month for
£5,000. On 5 March Bob uses the crane to lift a concrete beam weighing
four tonnes. The crane arm breaks, and the beam drops onto Bob’s Rolls
Royce car. Bob’s wife is furious as she has told him many times that he
should not take his car onto the building site. As a result of the accident,
Bob gets a bad reputation and is not considered for the job of renovating
the next warehouse.

Advise Bob.

Page 3 of 4
5. In January 2023 Karl booked a holiday at Adventure Camp in May 2023
for £3,000. Adventure Camp is a venue which specialises in “extreme
sports” offering a variety of activities including cliff diving. Karl paid a
£1,000 deposit in January with the remaining £2,000 to be paid in two
instalments; £1,000 on 1 March and £1,000 upon arrival. On 5 March
Karl discovered that cliff diving is no longer an available activity and so
he calls to cancel the holiday. Adventure Camp tell Karl that all the other
activities are still available, and that they will keep his place open and
expect full payment. Karl is very upset but decides he will still go on the
holiday.

Two days before Karl’s holiday is due to start, Adventure Camp is closed
down by health inspectors due to an outbreak of food poisoning. It is later
discovered that the outbreak was caused by contaminated milk used in
the manufacturing process of the ice cream that is sold at Adventure
Camp.

Advise Karl.

How, if at all, would your answer differ if the food poisoning was caused
by Adventure Camp’s chef storing the butter uncovered on the same
plate as raw meat?

6. ‘The right of action for third parties introduced by section 1 of the


Contracts (Rights of Third Parties) Act 1999 was unnecessary and so
has proved unpopular.’

Discuss.

7. ‘The law on undue influence is difficult to state clearly and even harder
to justify.’

Discuss.

8. ‘Specific performance should be more generally available as a remedy


for breach of contract.’

Discuss.

END OF PAPER

Page 4 of 4

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