1: In order to finance his university studies Nikhil ran a business buying and selling organic health products via mai order. However, he now has to concentrate on his final examinations, so he decides to wind up his business. Nikhil owes one of his suppliers, Namita 5,000 which was due to be repaid in full by 1 March. On 2 March he receives telephone call from Namita asking him to repay the 5,000 he owes. Nikhil knows that Namita is having cash flow problems and she herself may soon have to cease trading and so he offers to pay her 3,000 that day if she will accept in full and final settlement of the debt. Namita agrees to accept the 3,000 in settlement of the debt and Nikhil arrange for the money to be transferred to her account. Nikhil now needs to raise some money to support himself through the last few months of university, so he decides to s his van and his Rolex watch. Nikhil puts an advertisement in the back window of his van which states: This van is for sale. 6 years old, low mileage. 5,000: Telephone: Nikhil 01273 679810. On 4 March, Vicky telephones Nikhil and asks him for his lowest price. Nikhil informs Vicky he will accept 4,000 for the van. Vicky asks Nikhil if he will hold his offer open for a few days. Nikhil agrees to hold the offer open for her until 7 March. On 5 March, Brian comes to inspect the van. Nikhil informs Brian that the van was once owned by the Beastie Girls and was used to carry their music equipment when they were on tour. Brian is a great fan of the Beastie Girls, and he readil agrees with Nikhil to buy the van for 5,000. They draw up a written contract, in which no mention is made of who once owned the van. It is agreed that Brian will collect the van and hand over the purchase price on 6 March. On 5 March, Vicky, having been unable to get through on the telephone, sends a letter to Nikhil, letting him know that she accep his offer to sell the van to her for 4,000. On 6 March, Nikhil sends a text to Vicky to say that he has sold the van. On 7 March, Nikhil e-mails Charlie, a friend, asking if he wants to buy his Rolex for 1,000. Charlie e-mails in return, asking Nikhi if he will accept payment by 3 instalments. He gets a reply from Nikhil saying 'No'. Later that day, Nikhil gets a message on his mobile phone. The message is from Charlie accepting the offer of the Rolex for 1,000. Nikhil has now decided that he cannot part with the watch which once belonged to his great-grandfather and sends a text to Charlie stating, 'no sale'. Early the following morning Nikhil decides to go to Sporta Ltd's gym to have a jacuzzi. He pays at the desk but fails to see a notice which reads: All persons use the premises at their own risk. Sporta Ltd. accepts no liability for injury, theft, loss or damage to persons or property howsoever caused. Inside the changing room there is a large notice reiterating the exemption clause. Nikhil puts his clothing in a locker and goes to the pool. He steps into the jacuzzi but cuts his foot on broken glass that has been negligently left by Sporta's cleaner. After receiving medical attention, Nikhil returns to his locker to find that it has been broken into and his Armani suit and handmade leather shoes have been stolen. On returning home, Nikhil writes to Sporta Ltd, stating that he intends to take legal action against them. On 15 March, Nikhil receives the following mail: A letter from Namita demanding the remaining 2000 of his debt to her. A letter from Brian informing him that he intends to take action for misrepresentation as he has discovered that the van was never owned by the Beastie Girls. A letter from Vicky informing him that she intends to sue for breach of contract. A letter from Charlie informing him that he intends to sue for breach of contract. A letter from Sporta Ltd denying his claim and pointing out their exemption clause. Nikhil knows that you have studied law and asks you to advise him. Answer the following questions discussing all relevant issues and ensuring you support your answers with appropriate legal authority. a) Discuss whether a valid contract has been made between Nikhil and Vicky. (10 Marks) b) Discuss whether a valid contract has been made between Nikhil and Charlie (10 Marks) c) Advise Nikhil on whether the exemption clause in the notice part of the contract was and even if it was part of the contract whether Sporta Ltd can rely on it. (10 Marks) . A BI == 2