Commercial Law and Practice

Commercial Law and Practice

(if applicable):

Within 20 working days of submission

Note that all work handed in after the submission date and within 5 working days will be capped at 40%[1]. No marks will be awarded if the assessment is submitted after the late submission date unless extenuating circumstances are applied for and accepted (Advice Shop to be consulted).

You are required to submit one copy electronically on Turninit by 23:59 on the submission date.Please also note any further instructions for paper submission below.

You are required to acknowledge that you have read the above statements by writing your student number (s) in the box:

(to be completed by Module Lecturer)

The word limit for the assignment is 6000

Footnotes and Bibliography will not be included in the word count but should not be abused.

Learning Outcomes to be assessed(as specified in the validated module descriptor

1) To understand and critically analyse aspects of commercial law in relation to an assigned scenario and apply the appropriate rules.

2) To undertake a critical evaluation of the rules relating to commercial law and the impact upon various stakeholders.

Please see School’s marking criteria for undergraduate/post graduate assessments on the module Blackboard site.

InterBuild was an agent of Sky Construction, a company that owns a number of hotels across the UK. The company Luxury Hotels made an offer to InterBuild to buy one of the hotels owned by Sky Construction for £ 50 million.

Although Interbuild had no authority to do so, it accepted the offer. However, before ratification of the agent’s acceptance by Sky Construction, Luxury Hotels withdrew the offer.

In light of the withdrawal, InterBuild decided not to inform Sky Construction of the offer received and of its subsequent withdrawal.

The following day, the agent received a new offer, by the company Best Rooms, to buy the same hotel for £ 45 million; the prospective buyer also offered to pay a commission of £ 5 million directly to the agent. InterBuild accepted and immediately informed Sky Construction of the agreement, without mentioning the £ 5 million commission. Sky Construction ratified the agreement.

After a week, however, the company discovered the existence of the previous offer for £ 50 million made, and withdrawn, by Luxury Hotels, and was also informed, by a third party, of the commission paid by Best Rooms to the agent.

Critically analyse and advise Sky Construction on its legal entitlements, if any, vis-à-vis the legal issues relevant to this scenario. Your discussion must be supported by relevant legal cases and academic authorities.