Posted: November 22nd, 2014

ASPECTS OF CONTRACT AND NEGLIGENCE

ASPECTS OF CONTRACT AND NEGLIGENCE

Project description
2.1apply the elements of contract in given business
scenarios
2.2apply the law on terms in different contracts
2.3evaluate the effect of different terms in given contracts
Read the following mini-cases and answer the questions below
Mini-case A
On 13 September, Fiona, a newly qualified dentist, receives the following note from her uncle:
10 Park Street
LONDON
WI A54
Dear Fiona,
We talked some time ago about you buying some of my dental equipment when I retire from my London practice at the end of this month. I am prepared to let you have everything for 15,000. Let me know fairly quickly if you are interested because Ive already had a very good offer from one of my colleagues.
Your affectionate uncle
Arnold
Fiona is keen to take advantage of her uncles offer but is unsure whether she can raise such a large amount of money by the end of September. She phones her uncle to find out whether she can have until after Christmas to pay. Her uncle is away at a conference and so Fiona leaves a message with his secretary. Two weeks pass by and, as Fiona has not heard from her uncle, she arranges a loan with her bank. On 28 September she writes to her uncle accepting his offer and enclosing a cheque for 15,000. On 30 September, her uncle phones to say that he has already sold the equipment to someone else.
Mini-case B
Mrs Smith promises to give a 10 reward for the return of Lucky black and white cat. David sees the advert in the local paper finds the cat and spends 15 for a taxi to return the cat to Mrs Smith. David explain this to Mrs Smith and claims 25. Mrs refuses to pay David.
Mini-case C
Mrs Harris, the owner of three rented houses in Extown, asks her next-door neighbour, Ted, to collect rent from the tenants for her while she is abroad on business. Ted collects the rents and when Mrs Harris returns, she says to him, Ill give you 50 for your work. Later Mrs Harris refuses to pay Ted.

Mini-case D
Lynx Cars Ltd, the manufacturer of a revolutionary fuel-efficient small car, enters into a five-year dealership agreement with Roadstar Ltd, a northern-based company of car dealers, in November 2003. A clause in the agreement states: This agreement is not intended to be legally binding but the parties honourably pledge that they will carry out its terms.
Roadstar places an initial order for 2,000 cars to be delivered by the end of 2007, which is accepted by the manufacturer. One month after the successful launch of the car, Lynx Cars Ltd writes to Roadstar Ltd informing that, owing to production difficulties, the company estimates that it will be able to deliver only 200 cars by the end of 2007. It further states that it will be withdrawing from the dealership agreement from the end of 2007 to be able to concentrate its resources on its south of England car dealers. Roadstar Ltd is seeking some advice.
Mini-case E
Paul is looking for a second-hand car when he sees an advertisement in is local evening paper which reads:
SLICK CAR SALES LTD
Hundreds of used car bargains. Lowest prices youve ever seen. Definitely the lowest prices in Britain; All cars purchased this month will include Road Fund Tax, Radio, Stereo and a full tank of petrol. Paul visits the showrooms of Slick Cars and selects a car priced at 3,995 which the salesman tells him is a 1994 Mondeo which has done 30,000 miles and has had only one owner. Paul signs a sales agreement which describes the car as 1994 Ford Mondeo. Cayman Blue; Registration Number L931 AJU.
Paul is unsure of which of these statements represent traders puff, representation, conditions or warranty. He also wants to know the implied terms in this agreement and the remedies available to him if any of these statements turns out to be false.
Mini-case F
While on holiday at the seaside, Jim agrees to take his family to Fun Park. He pays 1 to park his car on a car park run by the Stand Council. A notice at the entrance of the car park, which has been partly obscured by overgrown shrubs, states: Cars parked entirely at owners risk. Jim pays 7 for a family admission ticket to Fun Park, which is managed by Leisure Ltd. The back of the ticket contains the following clause: The Company does not accept liability for death or personal injury to visitors, howsoever caused. Jim and his wife are watching their children on the waltzer when a metal bar flies off, injuring Jim and his wife. After receiving hospital treatment, Jim returns to his car to discover that it has been damaged by a Strand Council refuse van.
Jim and his wife are seeking advice.

Required:
1.Discuss the impact of different types of contracts (e.g. face to face, written, distance selling)(AC1.2). Provide examples to illustrate your answer.
2.Using the Mini-cases A, B, C and D, relevant principles and case law, explain the importance of the essential elements required for the formation of a valid contract (AC1.1). Reinforce your discussion by using relevant principles and case law. (AC2.1; AC2.2)
3.Using the Mini-cases E and F, relevant principles and case law, analyse terms in contracts with reference to their meaning and effect in the mini-cases above (AC1.3). Your analysis should specifically address the legality of exemption clauses and outline the remedies and damages available for breach of condition, warranty and innominate terms (AC2.3).
4.

what i need you in this task is to apply the theory on the mini case’s and to present on each one what kind of contract is and …….legal grounds and conclusion for each one .
D1
Use critical
reflection to
evaluate own
work and justify
valid
conclusionsconclusions have been arrived at through synthesis of ideas and have been justified
the validity of results has been evaluated using defined criteria
self-criticism of approach has taken place
realistic improvements have been proposed against defined characteristics for successAC1.3; AC2.3

D2
Take
Responsibility
for managing
and organising
activitiesautonomy/independence has been demonstrated
substantial activities, projects or investigations have been planned, managed and organised
activities have been managed
the unforeseen has been accommodated
the importance of interdependence has been recognised and achievedTask 2
D3
Demonstrate
convergent /
lateral / creative
thinkingideas have been generated and decisions taken
self-evaluation has taken place
convergent and lateral thinking have been applied
problems have been solved
innovation and creative thought have been applied
receptiveness to new ideas is evident
effective thinking has taken place in unfamiliar contexts

AC 4.1; AC4.2

AC3.3

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