LU1004 Contract Law Assignment

LU1004 Contract Law Assignment

Please answer THREE of the SIX questions provided.

Your answers for the three questions together should not exceed 3,000 words (including footnotes).

All questions carry equal marks

ANSWER ANY THREE OF THE FOLLOWING QUESTIONS:

  1. Do the Consumer Rights Act 2015 protections for consumers in relation to exclusion clauses go far enough? How do they interfere with freedom of contract?
  1. What is the test for the implication of terms in English Law? Does it make sense? Critically evaluate with reference to legal authorities.
  1. Peter knows that John is looking to buy a motorcycle and tells him in the student canteen that he has a perfect one that John can have for £3000. John, who has been on Peter’s motorcycle before, says he will have to think about it but that he is very interested. Pete replies that he will assume that John wants it unless he hears otherwise within five days. On the third day John hears that Peter has sold the motorcycle to David for £ 3,300. John who thinks he really does want the motorcycle immediately posts a letter accepting Peter’s offer. Sometime later that day John decides he is too weak to handle the motorcycle and e-mails Peter to say he does not want it after all. Peter does not check his email that day and does not receive the e-mail till the next day by which time he has received John’s letter. In the meantime David has renounced on his offer to buy the motorcycle and Peter is desperate to sell it to John.  Advise Peter as to his rights if any against John.
  1. Cockfosters Ltd   advertised the sale of a three storey property, which was previously used for student accommodation, for an asking price of £650,000. The Clydsons, a recently retired couple who wanted to purchase the property and convert it into a Bed & Breakfast (B & B) Motel to generate income, made inquiries. The Clydsons were shown around the premises by Cockfosters’ representative, Judith, who told them that property prices in the area were on an increase, and that this property was a rare investment opportunity. They were given particulars to the property which stated that “the premises are well proportioned, with an estimated turnover in the region of £24,000 per annum”. However, at the foot of the particulars there was a clause that read “while the particulars are believed to be correct, no responsibility is taken and clients should verify all relevant information and/or seek independent advice”. The Clydsons purchased the property at the full asking price of £650,000. However, soon after moving in, they discovered that the price of the property had been reduced from £850,000 to £650,000 just days before the Clydsons had made their inquiries about the property. Moreover, just days before they moved in, the value of the property had further deteriorated by £25,000.Furthermore; they discovered that the student lets only generated an annual income of £15,000 per annum. LU1004 Contract Law Assignment

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Advise the Clydsons of any rights they may have.

  1. On 1st September 2017, Genesis Entertainment Ltd (GEL) entered into a contract with the Faulkner Construction Company (FCC), to carry out major renovation work to its concert hall, The Foursquare, to increase its capacity from 8,000 to 10,000 attendees. Under the terms of the contract, all the renovation work was due to be completed by 1st February 2018. Payment was due upon completion and the contract was valued at £850,000.Every year, The Foursquare hosts the Spring Festival in the last weekend of March, which is opened with a performance by some of the biggest celebrities in showbiz. This year, the award winning pop star, Susu Dipper, is due to perform and tickets for the opening day of the festival, which went live in December 2017, sold out within hours of going live. GEL paid £50,000 for the performance by Susu Dipper to her agents. On 15th January 2018 FCC informed GEL that the work was not going to be completed by 1st February, owing to shortages of staff that were involved in a two week industrial action and that FCC could not afford the cost of hiring temporary staff to carry on the work, during the strike. As a result, GEL had to change the venue of the festival to an outdoor location, which cost them £150,000 and also to outsource its catering service. GEL entered into a contract with Kitchen Kings Caterers (KKC) for the supply of food and beverages for its organisers and guests. GEL paid KCC a deposit of £40,000 with the balance payable on performance of the contract. Two weeks before the concert, Susu Dipper had an emergency operation on her vocal chords and she was advised not to perform any concerts for a period of three months. Although GEL were able to replace her with the singer Glen Sheridan, fans have demanded refunds on tickets. GEL had spent £25,000 on the promotion of the festival which included distribution of a large number of posters featuring Susu Dipper. Furthermore, two days before the festival, KKC’s warehouse caught fire and GEL had to arrange alternative catering provision. LU1004 Contract Law Assignment

Advise GEL on its rights and liabilities in relation to the above contracts.

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  1. Discuss the significance of any TWO of the following cases
  • The Great Peace (2002) EWCA Civ 1407
  • Hadley v Baxendale (1854) 9 Exch 341
  • Central London Property Trust Ltd v High Trees House Ltd (1947) 1 KB 130

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