Question
Ray wants to open a boutique hotel. He buys yellow Cottage for 200,000 and on 1 February hires a construction company Build It Nice (BIN),
Ray wants to open a boutique hotel. He buys yellow Cottage for 200,000 and on 1 February hires a construction company Build It Nice (BIN), to carry out the refurbishment. Under the agreement, BIN needs to complete the work by 1 May for a fixed price of 30,000. On 1 May BIN informs Ray that they are experiencing financial difficulties and that unless he pays them an extra 10,000 they will not complete the work by the agreed date. Ray is furious. If the work is not completed by 1July he will need to postpone the opening of the hotel and cancel the bookings. Therefore, he reluctantly agrees to pay BIN the additional 10,000. BIP completes the work by 1 July.
You must continue to provide written advice in the case of Ray v BIN for your supervisor to consider. In the written advice for Ray v BIN, using the information provided you must ensure you: Assess the requirements for a valid consideration Analyse the development of the doctrine of duress
Your supervisor is pleased with your work to date and has set up a meeting with you to discuss certain points of law. You know that you must be prepared for this meeting as the supervisor will have high expectations of the discussion.
b) Ray orders 20,000 for some new made to measure furniture for the boutique hotel from Daka. Daka is to deliver the furniture on 1 July. Daka delivers the furniture on schedule but none of it is of the agreed dimensions. Wilson sends it back and wants Daka to refund him the 20,000 he paid for it. Daka refuses to refund him, bringing to his attention the following clause contained on the last page of their contract, which was duly signed by Ray. Clause 47 "No refund under any circumstances". Ray now finds a local company that can deliver furniture in time for the opening, but it only has sufficient furniture in stock to furnish three of the six bedrooms. Ray decides to go ahead with the opening despite the fact that only three of the rooms can be hired out. Your supervisor now wishes you to draft written advice to Ray v Daka for him to consider, In the communication you need to: Explain the difference between terms and representations Identify the sources of contractual terms Distinguish between conditions, warranties and innominate terms Examine the difference between breach of conditions, warranties and innominate terms Distinguish between liquidated and unliquidated damages Assess the aim of damages in Contract Law Compare and contrast the different measures used for assessing damages
A day before the opening, he receives a booking request from Rob Mill for a two-night, all-inclusive stay. When Rob arrives at the hotel, Ray is convinced that he is the famous football player Ronaldo, using an alias. At reception, Ray has displayed a few antique items for sale. On checking out, Rob selects a vase from the display and asks whether Ray is willing to take a cheque for it. Ray says that although usually he does not take cheques, as he is a famous football star, he will accept a cheque. To this, Rob smiles and gives Ray a cheque for 600. Ray accepts the cheque and gives the vase to Rob. When he goes to the bank to cash in the cheque, he is informed that the cheque is a forgery. Ray manages to trace the vase to Kam who had paid Rob 700 for it and refuses to give it to Ray. In the written advice to Ray v Kam, using the information provided you must: Identify the elements of actionable representation Differentiate between fraudulent, negligent and innocent misrepresentation
Two days before the hotel opens, Sania who was contracted by Ray to sing at the opening night, phones to say that she will not be performing because she has broken her leg and cannot travel. Ray demands that Sania returns the 1000 he paid to her for the performance. In the written advice for Ray v Sania you must ensure you: Explain the different ways in which a contract can come to an end Examine the doctrine of frustration
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started