You have gained employment in a large legal practice. As part of your induction you are spending some time working in five different parts of the organisation. In each department you are expected to carry out tasks on behalf of a senior partner.

Analyse the following business situations. Advise the customers on their rights and remedies which relate to the sale and supply of goods and services (AC 1.1). In order to give appropriate advice you should:

A) Apply the legal rules on implied terms relating to the sale of goods and supply of services

B) Apply the statutory provisions on the transfer of property and possession

C) Evaluate the statutory provisions on buyer's and seller's remedies

Scenario 1

In the following situation advise G and H Holmes on their rights and remedies (AC 1.2).

A local financial services company - G and H Holmes - decides to refurbish the reception area of its offices. They order the following items from local furniture supplier, Hopkins Limited:

A) A new carpet which Hopkins needs to order specially because they do not stock the required colour

B) 2 bookcases from Hopkins stock. The supplier agrees to remove decorative features from the top and sides, so that they will fit the available space in the reception area

C) A new reception desk and chair and two small leather settees which the senior partner has chosen from stock on display at Hopkins

The night before the carpet and furniture is to be delivered and fitted, the Hopkins Limited store is destroyed by fire and all items ordered are damaged beyond use.

Scenario 2

In the following situation advise Mr and Mrs Green on the rights and the remedies available to them (AC 1.3).

Mr and Mrs Green want an extension on their house. They ask three local building firms to provide estimates. The cheapest is Easybuild Ltd whose estimate is 8,000. They ask Easybuild to carry out the work and sign a contract with them. The contract does not mention the price payable or how long the work will take to complete. The workmen start in March but do not finish the job until the following February. The Greens are not happy with the work as the brick colour of the extension does not match closely to the house and soon after completion the flat roof of the extension leaks.

Assessment Criteria: Accurate application of implied terms relating to the sale of goods and supply of services fully explained in relation to the given scenarios. Application of the statutory provisions on the transfer of property and possession in scenario 1. Answers to include references to relevant legislation and an evaluation of the remedies available in each scenario. Answers should advise on individual rights.

The analysis should include the following:

What Skills a Student Should Show

A) Apply the legal rules on implied terms relating to the sale of goods and supply of services (Scenario 1 and Scenario 2)

Sale of goods and supply of services - contractual basis, principle of basic contract law, relevant case law, relevant legislation e.g., the Sale of Goods Act 1979, express and implied terms.

1.1 Evaluate when terms can or cannot be implied into the contract of sale of goods or for the provision of services'

B) Apply the statutory provisions on the transfer of property and possession (Scenario 1)

Transfer of property - statutory rules relating to transfer of legal and possessory titles, retention of title clauses, application of provisions to specific scenarios, relevant case law.

1.2 Evaluate statutory transfers of legal and possessory titles

C) Evaluate the statutory provisions on buyer's and seller's remedies (Scenario 1 and Scenario 2)

-Buyers' and seller's remedies - remedies available for breach of contract, distinction between conditions and warranties, innominate terms

-When are remedies applied; their purpose and intention

1.3 Evaluate buyers' and sellers' statutory remedies for breach of contracts