contract question
contract question
CONTRACT LAW
Instructions to candidates
Where questions are sub-divided, candidates should not expect the sub-divisions
necessarily to be of equal weight.
Please complete your answer in the Answer Booklet – the Answer Booklet is a
separate document in your exam course on ELITE. Please refer to the Candidate
Instructions – Online Written Examinations.
Where questions are sub-divided, candidates should not expect the sub-divisions
necessarily to be of equal weight.
Marks:
This examination comprises 60% of your final module mark. This examination is
itself marked out of 100.
The other 40% of your module mark is derived from a separate 45-minute Single
Best Answer Question-style examination.
You must answer the question in Part A. This question is based upon
the Advance Documentation you received yesterday and is designed to
assess higher order skills of critical evaluation or critical analysis. This
question will be marked out of 60.
There are two alternative questions in Part B. Answer one question from Part
B - do not answer both. This question will be marked out of 40.
Advance Documentation:
You received Advance Documentation yesterday. This relates to the question in Part
A. It is designed to allow you to demonstrate higher order skills of critical evaluation
or critical analysis. The Advance Documentation is repeated in the Schedule.
Assessment Criteria:
With the exception of SBAQ assessments, all assessments on the PgDL and on the
Conversion Component of both MA Law programmes will be marked according to
the Assessment Criteria. These can be found in the Assessments area of the
Student Handbook & Course Information module on ELITE.
PART A
Rosy Ryan runs a small but successful hotel. She decided to modernise the heating
system before the winter, replacing the radiators with underfloor heating throughout
the hotel. She contacted Greenheat Ltd (“Greenheat”) and a representative went to
the hotel to discuss her requirements.
The next day Rosy received a quote from Greenheat for £66,000. This is Document
A in the Advance Documentation which is set out in the Schedule. Immediately on
receiving the quotation, Rosy phoned to accept it.
The work was completed two weeks ago and Rosy paid Greenheat. Initially Rosy
was delighted. Then last week the system started to malfunction. First, all the
electricity in the hotel kitchen and restaurant went off. Then water from the upstairs
pipes flooded the hotel bar, destroying the carpet and damaging the guests’ TV. As a
result of the power failure, Rosy had to shut the hotel’s restaurant for the night.
Rosy found an independent heating engineer who was able to come round to the
hotel immediately for a call-out fee of £150. He identified the problem with the pipes
as incorrect installation by Greenheat’s engineer, Steve. The problem with the
electricity was a manufacturing defect on the thermostat which had blown the fuses
on the electricity supply to the kitchen. The independent heating engineer fixed the
problem with the pipes at a cost of £800 and replaced the thermostat at a cost of
£1,000.
£1,950 charged by the emergency engineer (£150 call out charge plus the cost of
parts and his labour);
The cost of replacing the lounge carpet and repairing the TV (£25,000); and
Profit lost as a result of shutting the restaurant.
Greenheat apologised, but drew her attention to clause 17 printed on the back of the
quotation extracts from which are set out in Document B in the Advance
Documentation. Rosy admits that she had not noticed the clause.
Advise Rosy, explaining her legal position in relation to both Greenheat and
Steve.
PART B
Question B1
“…there can be no doubt that the decision [in Williams v Roffey Bros] marks a move
away from reliance on technical rules of consideration towards a climate where the
courts will be more willing to enforce contractual renegotiations freely entered into
by parties of not unequal bargaining power. The safeguard against abuse of this
freedom lies in the developing doctrine of economic duress.”
With reference to decided cases, explain and critically evaluate the above
statement in relation to renegotiations to pay the other party more for the
same contractual performance or otherwise to accept less than the sum owed.
Question B2
Jeff had sold the family car and was looking to replace it with two smaller second-
hand cars; one for himself and one for his wife, Dawn (who had just passed her
driving test).
Two months ago, in the car park of a local supermarket, he saw a red Fiat 500 with
the following notice in the rear window.
FOR SALE
One careful lady owner/driver
Full MOT
£7,000 or nearest offer
Ring: 07715647862
Jeff phoned the number and went to see the car. He explained to the owner, Rona,
that he was looking to buy a car for his wife and that it was important to him that the
car should have been well-driven and maintained. He took the car for a short test
drive and then bought it for £6,950.
Dawn was delighted with the car, but unfortunately last week the brakes failed while
she was driving it at 50 miles an hour on a dual carriageway and the car smashed
into the central reservation. Dawn was injured and the car was very badly damaged,
and has no value for insurance purposes. The insurance assessor explained to
Dawn that the car had clearly been driven fast and hard, and that this had caused
the brakes to wear out.
Furious and upset, Jeff immediately contacted Rona and complained about the
misleading advertisement in the car. Rona said it was true that she had been the
only owner and lady driver of the car, but she confessed the car had been driven a
lot by her son whom she described as a “boy racer”.
Jeff had intended to buy himself a car from a car auction which he had seen the
advertised by Motor Auctions Ltd. See Document C below.
Jeff attended the auction and bid £1,000 for a 2012 Audi A3. Although there was no
higher bid for the car, the auctioneer withdrew it from the sale as he knew he could
get at least £5,000 for it elsewhere.
Advise:
DOCUMENT C
SCHEDULE
DOCUMENT A
GREENHEAT LTD
ECOHEATING SYSTEMS
QUOTATION
CLIENT ADDRESS
Hotel du Raisin
Date: 06 February 2024
Stratford
Account ref: HDR/steve
Warwickshire CV36 4NW
PRICE/£
GROUND FLOOR: PIPEWORK WITHIN SLAB to include:
Materials and Installation
Total 20,000
ELECTRICS to include:
Materials and Installation
Total 5,000
DOCUMENT B
Extracts from Greenheat Ltd Standard Terms of Business
IMPORTANT
Greenheat Ltd Standard Terms of Business
SUPPLY OF SERVICES
16.1
Greenheat shall supply the Services to the Customer in accordance with the
Service Specification in all material respects.
……………
16.4
Greenheat warrants to the Customer that the Services will be provided using
reasonable care and skill.
…………….
LIMITATION OF LIABILITY
17.1.1
Greenheat accepts no liability for loss caused by defects in the equipment
supplied.
17.2.2
The total liability of Greenheat or any of its employees for any loss caused by
omission, neglect or default shall be limited to the contract price of the equipment
installed.
17.2.3
Nothing in this clause is intended to limit any liability which cannot legally be
limited, including liability for:
(a) death or personal injury caused by negligence;
(b) fraud or fraudulent misrepresentation;
(c) breach of the terms implied by section 12 of the Sale of Goods Act 1979 or
section 2 of the Supply of Goods and Services Act 1982 (title and quiet
possession); and
(d) defective products under the Consumer Protection Act 1987.
Outcome Knowledge and understanding: Cognitive skills (including Transferable Skills): Practical skills (including Transferable Skills): %
(Derived from
Programme Critical awareness and application of Ability to select appropriate information. Logical approach to problem Communicate concepts and principles clearly, in a
Outcomes) knowledge/ principles/relevant area. solving with analysis, critical evaluation, and judgement/conceptual logical, structured and professional manner.
evaluation.
High As for Distinction, with exceptional depth As for Distinction, with: As for Distinction, with: High
Distinction of insight into the inter-relationship of outstanding (rather than excellent) ability to propose a solution or Outstanding use of language. 92,5,8,
different concepts, ethical make a judgement on the merits of any assertions made, and Exemplary presentation in terms of structure 100%
considerations, and case-analysis. demonstrating originality of thought. and use of theories, principles, and concepts.
Distinction Excellent ability to correctly identify and Exceptional systematic and creative analysis of complex factual Excellent use of language. Mid
apply relevant legal principles and policy situations and application of established principles and policy in a Clear and effective presentation appropriate for 82,5,8%
to very high standard of accuracy. logical manner. intended audience.
Excellent knowledge of current research Insightful critical evaluation of the subject using a wide range of Where appropriate, full and appropriate Low
and scholarship in the relevant subject sources. references and notes. 72,5,8%
area. Excellent ability to propose a solution or make a judgement on the A coherent structure.
merits of any assertions made.
Development of a strong overall argument.
Commendation Consistent demonstration of Consistent ability to analyse complex factual situations and apply Consistent use of language. High 68%
comprehensive and systematic established principles in a logical manner. Succinct, and accurate presentation.
understanding of a considerable variety Consistent ability to critically evaluate the law using a wide range Where appropriate, full and appropriate Mid 65%
of issues, concepts, theories and of sources. references and notes.
research/evidence. Ability to propose a solution or make a judgement on the merits of A coherent structure. Low 62%
Excellent identification and application of any assertions made.
the relevant principles to support key Development of a convincing overall argument.
points.
Pass Sufficiently comprehensive and Some ability to analyse complex factual situations, apply Good use of language with the main points High 58%
systematic understanding of all major established principles in a logical manner. clearly and effectively expressed.
(and some minor) issues, concepts, Ability to critically evaluate the law using a range of sources. Where appropriate, full and appropriate Mid 55%
theories, and research. Some ability to propose a solution or make a judgement on the references and notes with minor or insignificant
Ability to correctly identify and, in most merits of any assertions made. errors. Low 52%
instances, apply the relevant principles. Where relevant, evidence of an convincing overall argument but Some coherent structure.
which may have weaknesses, omissions, gaps or inconsistencies.
Marginal fail Some or all of: Some or all of: High 48%
Outcome Knowledge and understanding: Cognitive skills (including Transferable Skills): Practical skills (including Transferable Skills): %
(Derived from
Programme Critical awareness and application of Ability to select appropriate information. Logical approach to problem Communicate concepts and principles clearly, in a
Outcomes) knowledge/ principles/relevant area. solving with analysis, critical evaluation, and judgement/conceptual logical, structured and professional manner.
evaluation.
Evidence of understanding of major Insufficient analysis of legal and/or factual issues and/or makes a Poor use of language with some points being Mid 45%
issues, concepts, theories, and significant error in application of established principles; unclear and answers poorly structured.
research, which may contain some gaps. Insufficient critical evaluation of the law; and/or Where appropriate, competent references and Low 42%
Only basic recall of key legal principles Insufficient ability to propose a solution or make a judgement or notes that may contain inconsistencies, errors
and unable to consistently order and reasoned conclusion on the merits of any assertions made. or omissions.
analyse relevant legal principles. Inconsistent or incoherent structure.
Clear Fail Unclear, imprecise or inadequate Some or all of: Some or all of: 32,5,8%
knowledge of relevant legal principles Inadequate or inaccurate analysis of legal and factual issues; Inadequate use of language.
and/or fundamental errors. Little or no critical evaluation of the law; Unstructured answers. 22,5,8%
Application of the law in a contradictory way; and/or
Inadequate ability to propose a solution or make a judgement or 12,5,8%
reasoned conclusion on the merits of any assertions made.
2,5,8%