Law of Contract

Law of Contract

You should answer both questions.

Question 1

Amanda, Barry and Cillian are directors of Horizon Property Ventures Ltd which buys and renovates domestic properties to sell or rent out.

Barry negotiates a contract with Brush Strokes, which is a painting and decorating company, for the provision of decorating services on a block of ten apartments that Horizon has bought to renovate and sell.  Brush Strokes offer Barry £10,000 for giving them the contract for the apartment block.  Brush Strokes also offer Barry the use of a heavy duty paint and wallpaper stripping machine for a week, while he is doing some work on his own house.  Barry accepts both the money and the loan of the equipment. He does not tell Amanda and Cillian about either the £10,000 or the equipment loan.

Horizon need to raise some capital quickly and the directors decide to sell a piece of land. Barry finds buyers for the land, Whitehouse Land who offer £125,000 for a quick sale. Barry accepts on behalf of Horizon.  Whitehouse Land then sell the land within 7 days to a hotel chain, making a profit of £75,000 on the deal. The directors of Whitehouse Land are the sons of Barry’s second (current) wife Dawn. Barry and his step-sons have a 24% shareholding stake in Whitehouse Land between them.

Amanda, Barry and Cillian take  part in negotiations for Horizon to buy a former hotel Lakeside Lodge , with the intention of converting it into flats for Horizon to let. Barry resigns from his position at Horizon and goes to work for Whitehouse Land. He then approaches the owners of Lakeside Lodge and secures the sale of the hotel to Whitehouse Land.

Barry’s ex wife Fiona tells Amanda and Cillian what Barry has done.

Advise Amanda and Cillian whether Barry has breached any of his duties as a director of Horizon Property Ventures Ltd.  (50 marks)

Now answer Question 2 (on next page)

Question 2

Abigail visits Bridge Road Garage to look at used cars. She tells the car salesman, Colin, that she would like a used car up to four  years old that is in good condition.

Colin shows her a three year old Mini. He tells her that it has a ‘full service history and is in excellent condition for its age.’  He offers the service history to Abigail to read but she declines.  Abigail agrees to buy the car.

The negotiations take place in an office at the garage, and Abigail signs a contract for the purchase of the car for £4,000.  A notice on the wall of the office states: “Our liability for breach of any term of the contract,  express or implied, as to description, quality or fitness for purpose is hereby excluded. Bridge Road Garage will not accept liability for personal injury, howsoever caused. ”  Colin  does not draw Abigail’s attention to the notice.

When delivered, the car is defective: parts are missing and the brakes do not work properly, causing the car to crash. The car is completely destroyed. Abigail suffers a broken collar bone and concussion in the accident.

After the accident, Abigail reads the service history provided with the car which reveals that the car had previously been in a serious accident and undergone extensive repairs.

Advise Abigail  (50 marks)

[END]

•    You will need to submit two copies: an electronic copy must be uploaded via Turnitin on the KLE and then a written copy should be handed in to the ISC office. You will need your Turnitin submission number to write on the front cover of the printed copy.

General requirements for coursework:
•    The font should be 12 point for ease of reading (use a ‘classic’ font such as Arial, Times New Roman, Century or Garamond and avoid anything that looks informal or artistic.)
•    All work must be 1.5 or double spaced
•    Leave page margins of at least 2.5 cm for markers’ comments
•    Coursework should be fully referenced using the OSCOLA conventions

Referencing using OSCOLA

There are two elements to referencing:
1.    In text referencing. This is in the form of footnotes and can be done easily using Word. Use the Insert Footnote button on the References tab in Word.
AND
2.    a bibliography at the end of the work. The bibliography must be divided into primary sources (case law and statute) and secondary sources (text books, journal articles and other comment on the law)

A full guide to OSCOLA can be downloaded free of charge from: http://www.law.ox.ac.uk/published/OSCOLA_4th_edn.pdf

A short introductory (1 page) guide is available and is essential reading:
https://www.law.ox.ac.uk/published/OSCOLA_4th_edn_Hart_2012QuickReferenceGuide.pdf

Problem questions
In this type of question, you are asked to advise on issues of law arising from a (fictional) legal problem.
You are required to:
•    demonstrate your subject knowledge on a particular topic,
•    apply that knowledge to the specific question(s) asked
•    and present an organised argument.

Tips for answering problem questions
•    explain the legal issues in the problem in your own words
•    respond critically to the problem with your own arguments about liability
•    support your arguments with relevant precedents, in the form of case citations
•    discuss every issue in the problem – even if you think the answer to the first part is very clear legally, consider the rest of the issues as well. They are there for a reason (to let you show your knowledge and gain some more marks!)

Kent University guide to answering problem questions
http://www.kent.ac.uk/library/subjects/lawlinks/skills-hub/docs/problems_v2.pdf

You should answer both questions.

Question 1

Amanda, Barry and Cillian are directors of Horizon Property Ventures Ltd which buys and renovates domestic properties to sell or rent out.

Barry negotiates a contract with Brush Strokes, which is a painting and decorating company, for the provision of decorating services on a block of ten apartments that Horizon has bought to renovate and sell.  Brush Strokes offer Barry £10,000 for giving them the contract for the apartment block.  Brush Strokes also offer Barry the use of a heavy duty paint and wallpaper stripping machine for a week, while he is doing some work on his own house.  Barry accepts both the money and the loan of the equipment. He does not tell Amanda and Cillian about either the £10,000 or the equipment loan.

Horizon need to raise some capital quickly and the directors decide to sell a piece of land. Barry finds buyers for the land, Whitehouse Land who offer £125,000 for a quick sale. Barry accepts on behalf of Horizon.  Whitehouse Land then sell the land within 7 days to a hotel chain, making a profit of £75,000 on the deal. The directors of Whitehouse Land are the sons of Barry’s second (current) wife Dawn. Barry and his step-sons have a 24% shareholding stake in Whitehouse Land between them.

Amanda, Barry and Cillian take  part in negotiations for Horizon to buy a former hotel Lakeside Lodge , with the intention of converting it into flats for Horizon to let. Barry resigns from his position at Horizon and goes to work for Whitehouse Land. He then approaches the owners of Lakeside Lodge and secures the sale of the hotel to Whitehouse Land.

Barry’s ex wife Fiona tells Amanda and Cillian what Barry has done.

Advise Amanda and Cillian whether Barry has breached any of his duties as a director of Horizon Property Ventures Ltd.  (50 marks)

Now answer Question 2 (on next page)

Question 2

Abigail visits Bridge Road Garage to look at used cars. She tells the car salesman, Colin, that she would like a used car up to four  years old that is in good condition.

Colin shows her a three year old Mini. He tells her that it has a ‘full service history and is in excellent condition for its age.’  He offers the service history to Abigail to read but she declines.  Abigail agrees to buy the car.

The negotiations take place in an office at the garage, and Abigail signs a contract for the purchase of the car for £4,000.  A notice on the wall of the office states: “Our liability for breach of any term of the contract,  express or implied, as to description, quality or fitness for purpose is hereby excluded. Bridge Road Garage will not accept liability for personal injury, howsoever caused. ”  Colin  does not draw Abigail’s attention to the notice.

When delivered, the car is defective: parts are missing and the brakes do not work properly, causing the car to crash. The car is completely destroyed. Abigail suffers a broken collar bone and concussion in the accident.

After the accident, Abigail reads the service history provided with the car which reveals that the car had previously been in a serious accident and undergone extensive repairs.

Advise Abigail  (50 marks)

[END]

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