Posted: July 16th, 2015

CONTRACT LAW 1

CONTRACT LAW 1

Boris is an antique dealer who specialises in jewellery. Having seen an advert for an antique jewellery auction “without reserve” in Hotton, he attended the auction and was the highest bidder for a diamond necklace and earrings having bid £250. Before the fall of the hammer, the auctioneer withdrew the items as the seller had in fact placed a reserve price of £1500 on the necklace and earrings. Boris considers that he is entitled to the items for £250 and has a binding contract.

Boris has also agreed with Shopfitters Ltd that they will re-furbish and re-decorate his shop for £2000 ready for a grand re-opening on 1st September. Two weeks before the grand opening, Shopfitters Ltd told Boris they would struggle to complete the work on time and had underestimated the costs by £750 and without the additional money might be unable to complete the work at all. Boris promised Shopfitters Ltd an extra £300 if they completed the work on time which they did. Boris is so pleased with the work, he promised Shopfitters an extra £100. Shopfitters are now claiming the extra sums but Boris is refusing to pay saying the contract stated the price as being £2000 and that is all he will pay.

1.    Advise Boris as to whether he can claim breach of contract in relation to the auction sale of the necklace and earrings.                         (30%)

2.    Advise Boris as to whether he is bound to pay the extra sums to Shopfitters Ltd.