Questions

Chap 1

1. Consider the following cases and decide whether criminal or civil proceedings would result, and make

a note of the parties in the action.

a) Ali is being prosecuted for careless driving.

b) Joe returns a faulty stereo to the shop where he bought it but the shop manager refuses to give him

a refund.

c) Kurt drives his car at 70 mph through town one Saturday night. He fails to see Gita on a zebra crossing and knocks her down.

d) Sally is being sued by her landlord for non-payment of rent for three months.

e) Jane is an alcoholic. She is pregnant and continues to drink heavily throughout her pregnancy and

as a result her child is born with foetal alcohol syndrome.

2. Explain what is meant by the term 'common law'.

Chap 2

1. Outline the advantages and disadvantages of tribunals over the court system.

2. Explain what is meant by arbitration, mediation, and conciliation.

40 Part 1 The English Legal System3. Raj steals Asha's car, drives it to a remote part of town and sets it on fire. Raj is caught by the police and

prosecuted for theft of the car. Asha wants to sue Raj for compensation for the damage to her car. Advise

Raj in which court or courts he may have to face trial and explain to Asha how to commence a civil claim.

4. Explain clearly which court would deal with the following matters:

a) Ace plc is suing Fox plc for 20 million. The case involves complex commercial law issues.

b) Virju is suing Beejal for 800 and his case is due to be heard by a District Judge.

c) Southland Bank plc is suing Useless Ltd for 14,000 and the case is to be heard by a Circuit Judge.

d) Adam is being prosecuted for manslaughter (an indictable offence).

e) Kevin is being prosecuted for careless driving (a summary offence).

Chap 3:

1. What are the three main sources of law in England in the 21st century? Which do you think is the most

important and why?

2. Explain the concept of judicial precedent in the English legal system. In England and Wales, both statute and common law exist together: which of these is a more superior form of law? Explain your answer.

Chapter 3 Sources of English Law 793. Parliament passes the Safety at Work Act 2012 (fictitious) giving the power to the Secretary of State to

pass regulations (delegated legislation) relating to workplace safety. The Act was passed to comply with an

EU law directive. The Secretary of State passes a regulation making it an offence for businesses employing

more than six people not to have a trained first aid officer on the premises during working hours. Explain

the meaning of 'Act', 'delegated legislation', and 'directive', and discuss the relationship between them.

4. Jamie has just opened a new themed 1970s wine bar and reads in the paper about the new 'Alcoholic

Drinks Bill' which appears to forbid the sale of alcohol in certain public outlets. The bill has had a First

Reading in the House of Commons. Explain to Jamie the stages the new bill will have to go through before

it becomes an Act of Parliament and, if the Act is made, how its sections will be interpreted by a court.

Chap 4:

1. Consider whether a valid contract has been formed in the following circumstances.

a) Iraj sees the following advertisement in his local newspaper: 'For Sale: Rose Bushes only 12.99 for

five. Hurrylimited supplies. Send cheque to Beautiful Gardens Ltd., PO box 123'. Iraj sends a

cheque but is told the bushes are sold out.

b) Dave writes to Peter, 'You mentioned that you would like to buy my red sports car. You can have it

for 5,000. If you want it let me know by the end of the week.' The following day Dave sells his car

to Jane. Peter learns of the sale and immediately tells Dave he accepts his offer.

c) Mary sent out a circular to all interested businesses in her area offering for sale her fleet of company cars for which tenders were invited. Jane's tender turned out to be the highest but Mary has

refused to sell her the cars.

d) Strait and Co, a manufacturer of vitamin pills, states in an advertisement that the regular use of its

'Vito' pills will increase a user's energy levels in two weeks. Slouch takes 'Vito' pills every day for two

weeks but notices no improvement in his energy.

Questions For outline

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114 Part 2 Contract Lawe) Penelope writes to Quentin offering to buy his car for 2,000 and says that if she has not heard

from him within a week she will assume that he has accepted. A week elapses and Penelope has

heard nothing from Quentin.

f) On Monday Teresa sends a fax to Ursula offering to sell her diamond necklace at a knock down

price of 10,000 for a quick sale. Ursula sends a letter back the same day accepting the offer. On

Tuesday, before Ursula's letter arrives, Teresa agrees to sell the necklace to another person.

g) James offers to sell his laptop to David for 750. David offers to pay 500. James refuses to accept

500. David agrees to pay 750.

h) Paul sees a lawn mower in a shop window with a price tag of 100. He says that he will buy the lawn

mower but the shop assistant says that the price tag should read 200 and refuses to sell it to him

for 100.

i) Lin books a train to Exeter using Simplerail's internet service. Although she put in her credit card

details when she booked the train, she has had no confirmation of her booking.

2. Andrea decides to sell her car and puts a notice on the back windscreen of the car. The notice reads,

'This car is for sale, excellent condition, low mileage, bargain at 2,000. Please phone Brighton 678123 or

call in at 8 Hove Street.'

On Monday morning Bob telephones Andrea and offers to buy the car for 1500. Andrea refuses to

accept his offer. Later that day Bob changes his mind about the car and telephones Andrea. She is out

so he leaves a message on her answerphone saying, 'I agree to give you the full asking price of 2000

for your car and will be round to collect it tomorrow'.

On Tuesday morning, Carl sees Andrea's car and writes a letter of acceptance to Andrea enclosing a

cheque for 2,000. He immediately puts the letter in the post box. On Tuesday afternoon Debs calls

at 8 Hove Street but Andrea is out, so she puts a note through the letterbox stating, 'I have had a good

look at your carit is just what I wantI enclose a cheque for the full asking price of 2,000'.

Explain to Bob, Carl, and Debs if they have a valid contract to purchase Andrea's car, giving full reasons

with case illustrations.

3. Fully explain the difference between 'an offer' and 'an invitation to treat'. In contract law, is an advertisement in a newspaper treated as 'an offer' or 'an invitation to treat'?

4. 'Acceptance must be communicated to the offeror by the offeree'. Discuss what this phrase means and

consider any exceptions to the rule

Chap 5:

1. a) Every week, Amy and Jim and their daughter, Sophie, enter the National Lottery, each contributing

1 for 3 lucky dip numbers. Sophie always fills in the form, pays over the money to the newsagent,

and keeps the ticket. Last week five of their numbers came up and the ticket paid out 5,000.

Sophie refuses to share the 5,000. Advise Amy and Jim.

b) Discovering the kitchen on fire, Bella telephoned the fire brigade. On their arrival she told Sam, the

officer in charge, that she would give each fireman 50 if they prevented the fire from damaging

her living room which contained valuable antiques. The firemen extinguished the fire and confined

its effects to the kitchen. Bella has refused to pay. Advise the fire brigade.

c) Alice is travelling to Oxford when her car gets a puncture. The driver of a passing van stops and

offers to change the wheel of Alice's car. When he has finished he says 'That will be 100 please. I'm

part of the Blue Flag rescue service. I have a garage just down the road.' Explain to Alice if she is

legally obliged to pay the 100.

d) While Paul is away on holiday his neighbour, Jim, mends Paul's garden fence. When Paul returns he

is so pleased he promises to give Jim a case of French wine. This was two weeks ago and Jim has

still not received any wine. Has a contract been made between Paul and Jim?

2. Anthony entered into a contract with Bruce to refurbish a block of 100 flats; the work was to be completed in three months. The contract stated that late completion would be charged at 5,000 per day.

Anthony sub-contracted with Clive to install the fitted kitchens and bathrooms in each of the flats for a

fixed price of 100,000. After a month it became obvious to both Anthony and Clive that Clive had grossly

underpriced the cost of the materials and he would be in financial difficulties if he completed the job.

Consequently, Anthony offered to pay Clive an additional 300 per flat provided they were finished before

the completion date. Clive carried on with the contract and completed the work in time. Anthony is now

refusing to pay him the additional money. Advise Clive.

Questions

154 Part 2 Contract Law3. In social and domestic agreements what presumption is made with regard to intention to create legal

relations? How does this differ from the approach to intention in business agreements? Give examples

from case law.

4. Explain what is understood in contract law by the statement 'Consideration must be sufficient but need not be adequate'.

Chap 6:

1. Dr Know, a well-known academic, is due to speak at the Annual Brighton Small Business Conference.

She arrives early and books into the Ship Hotel, owned by Leisure Ltd. She has stayed there on a number

of occasions in previous years. Her room is not ready so she asks the receptionist if she can leave her

overnight bag with him. He takes her bag and gives her a cloakroom ticket, which she stuffs into her

Chapter 6 The Terms of a Contract 191pocket without reading. The back of the cloakroom ticket reads 'All items left at reception at owner's risk.'

When Dr Know returns to the hotel she is informed that her bag has gone missing but will be returned to

her as soon as it is found.

Dr Know goes up to her bedroom and sees a large notice which states: 'Leisure Ltd accepts no responsibility for loss of property or injury to persons, howsoever caused'. Dr Know decides to carry her laptop

computer to dinner in case it is stolen from the hotel room. Unfortunately, on her way to dinner, Dr Know

catches her shoe in a large hole in the stair carpet, and falls down the stairs breaking her arm and damaging her laptop.

Advise Dr Know whether she can claim, in law of contract, for the loss of her overnight bag (which has

never been found), the damage to her laptop, and for the injury caused to her arm.

2. a) Hari took a lease for 10 years of a garage from British Petrol plc. The lease stated that Hari could

only sell petrol provided by British Petrol plc. Hari has now discovered he could buy Ecco petrol

cheaper.

Advise Hari if he is bound by the solus agreement with British Petrol plc.

b) Gerald is employed by Dairy Ltd and has learnt their trade secret of making chocolate that does not melt in temperatures below 40C. His contract states that if he leaves Dairy Ltd he must not be involved in the manufacture of chocolate or any other confectionery in the UK or the rest of the world for five years.

Discuss whether this restraint clause is lawful.

3. Distinguish between:

a) A puff, a representation, and a term.

b) A condition, a warranty, and an innominate term.

4. Explain the effects of the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999 in relation to exclusion clauses.

Chap 7:

1. In October, Atomic Kat Ltd begins negotiations with Alcopops Ltd for sponsorship for Atomic Kat, a

famous pop group. In November, Natasha from Atomic Kat informs the rest of the members of the group

that she is thinking of going solo. In December, Atomic Kat Ltd sign the sponsorship contract with Alcopops

plc under which Atomic Kat Ltd agrees to promote Alcopops in return for sponsorship of 50,000 in

Atomic Kat's forthcoming six-week Christmas tour. At the end of the first week on tour, Natasha announces

publicly she is leaving the group.

Advise Alcopops plc who have stated they would not have entered into the contract if they had known

Natasha was leaving.

2. Lulu owns a luxury watch and jewellery store in Brighthelm. She receives an e-mail order for two topof-the-range watches, costing 2,000 each, from Terry who claims to be from Anex Design, an interior

decorating company which requires the watches quickly as retirement presents for two of their longserving employees. Lulu has the watches in stock and she agrees to sell them on receipt of a company

cheque. The cheque arrives the next day and Lulu sends the watches to Anex Design.

The following day Heather comes into the store and wishes to buy a diamond ring, priced 1000.

Heather writes out a cheque, but Lulu explains that the store does not take personal cheques. Heather

replies 'You must know my faceI'm the famous actress Heather Miles. I live here in Brighthelm' and

shows Lulu her equity card which contains a photo and the name 'Heather Miles'. Lulu looks up the phone

Chapter 7 Vitiating Factors 231book and sees that a Heather Miles lives in Brighthelm. She accepts Heather's cheque and lets her take the

ring away.

The cheques from Anex Design and Heather Miles are dishonoured. Lulu has now discovered that

Anex Design does not exist and the watches have been sold on to Chris and Barbara, and that the diamond ring has been sold on to Kia. Advise Lulu.

3. Discuss what is meant by common mistake, mutual mistake, and unilateral mistake in the law of contract and explain the effect mistake will have on a contract.

4. A contract entered into where there is undue influence or duress is voidable but what constitutes:

(a) duress, and (b) undue influence

Chap 8:

1. Sally used to be the owner of a prosperous dating agency in Brighton. Three years ago she made a

contract with Speedy Ltd to advertise her agency on four of their buses for a period of one year. Soon after

she had made this contract, Sally decided to terminate her dating agency and become an accountant. She

asked Speedy Ltd not to go ahead with the advertisements, but Speedy refused to cancel the agreement,

and for the last year has been carrying out its side of the bargain. Last week Sally received a bill from

Speedy Ltd for 7000. Advise Sally.

2. Sebastian is the owner of a famous fish restaurant 'Poissons'. He has just engaged a top chef, Pierre,

who has contracted to work solely for him during the next six months, and not to work in any other restaurant within a mile during that time. 'Poissons' has a large tank full of a variety of live fish from which

customers choose their dinner. In breach of contract, the fish food suppliers, Shark Ltd, supply poisonous

fish food on Friday morning, and by Friday evening all the fish are dead. As a result, Sebastian closes the

restaurant both Friday and Saturday evening losing one hundred bookings each night. A few days later,

Pierre argues with Sebastian, walks out, and goes to work in the restaurant next door. Advise Sebastian:

a) In a claim for damages against Shark Ltd.

b) Of any remedies he may have against Pierre.

3. Explain the meaning of 'Remoteness of damage' and 'Measure of damages'.

4. In what circumstances may a contract be discharged because of frustration?

Chap 9:

1. Jenny authorises Sam, her agent, to sell Jenny's antique diamond ring for not less than 3,000 and to

purchase twenty plasma screens for Jenny's business for up to 6,000. Sam buys the ring herself for 3,000

using a nominee and then sells it on to a dealer for 4,000. Sam keeps the 1,000 she has made. Sam, who

is well known at Dixons plc as an agent for Jenny, contracts to buy ten plasma screens from them for

7,500. Advise Jenny.

2. Harry appoints Lin, as an agent, to sell his microlight aeroplane and agrees to pay her 5 per cent commission. Lin sells the aeroplane to Paul for 50,000 and Harry pays her 2,500 commission. As Paul has

got the plane cheaply, he gives Lin a commission of 1,000. Lin does not disclose this to Harry.

Harry appoints Alice as his agent to sell two paintings. He tells her to sell the paintings for at least

10,000 each. Alice sells one painting to Kiri for 8,000. Unknown to Harry, Alice buys the other painting

herself for 13,000, and sells it on to Prad for 18,000.

Advise Harry, who has now learnt of the 1000 Lin received from Paul, and of Alice's dealings on the

paintings.

3. Explain the different methods by which an agency relationship may be established.

4. Discuss the rights and duties of an agent.

Chap 10:

1. Cathy, the owner of a small business, is going on a skiing holiday. Before leaving she orders a grey

carpet for the office from carpets2U Ltd's sample book. The back of the sample has a sticker on it which

describes the carpet as 100 per cent wool. Cathy also treats herself to an expensive set of new skis from

Alpine Ltd. The first time Cathy uses the skis they snap into pieces. On her return from holiday, Cathy

discovers the office carpet that has been laid is pink and 100 per cent polypropylene. Advise Cathy if any

of the terms which are implied into contracts under the Sale of Goods Act 1979 (as amended) may have

been breached in the contract for the sale of the carpet and the contract for the sale of the skis.

2. Ali, a student, buys a new laptop computer for 400 from a local retailer 'IT Solutions'. When he pays,

he signs a document (which he doesn't read) which is an acceptance note. In the first three months, the

laptop has to be returned nine times to have minor defects remedied. In total, Ali only has use of the

computer for two weeks within that three-month period. When the laptop malfunctions for the tenth

time, Ali returns to 'IT Solutions' and demands his money back. The manager of the store points to a large

sign behind the counter which says 'No RefundsOnly Repairs'. Advise Ali.

3. Explain the terms which are implied into contracts for the sale of goods by ss 13, 14(2), 14(3), and 15 of

the Sale of Goods Act 1979.

4. 'Ownership of goods passes when the parties intend it to pass' but when does ownership pass if no

intention of the parties is evident