Contract Law

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Manchester Metropolitan University

20/21 Block 4 Assessment Period

Faculty of Business & Law

Manchester Law School

Programme information

LLB(Hons)

Level of study: 4

Examination information

Unit code: 454Z0014_2021

Paper title: PRINCIPLES OF CONTRACT LAW

Exam Duration: 24 hours

Instructions to Candidates on Page 2

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Instructions to Candidates

Answer ONE question only. You can choose any ONE question from the three

provided. There are no compulsory questions.

All questions carry equal marks.

There is a maximum word limit for your answer of 750 words. You must

declare your word count at the beginning of your answer.

You should use exam style referencing for cases/statutes/books cited as

authority.

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Answer ONE question. You can choose any ONE question from the THREE provided. There are no compulsory questions. 1. Recently there has been a lot of rain and Bridget’s garden has been

flooding. She contracts with Atif to dig trenches and insert pipes as land drains in her garden. They agree that the work will be completed by 30th March and that Atif will complete all of the necessary work for £8,000.

When Atif commences the work in mid-February, he discovers that there is a layer of rock in the ground and he will need to hire heavy-duty pneumatic digging equipment to remove it. He had not anticipated the rock when he quoted for the work. He approaches Bridget and explains that the rock will delay his work by a month unless he hires expensive digging equipment. Bridget reminds Atif that they agreed that he would finish by 30th March. Atif tells her that he has some digging equipment but using it would be a slow process and he can only meet her deadline if he hires different equipment at an extra cost of £1,500. Bridget works from home, offering outdoor pilates classes in the garden. She has a full diary of classes from mid-April which she knows that she will have to cancel if Atif does not finish on time. She reminds Atif that he had agreed a finish date and price but he says that he simply cannot afford to complete the job without further payment because he will be losing money. When Atif will not change his position, Bridget reluctantly agrees to pay him the additional £1,500 if he completes on time. Bridget tells Camilla, one of her students, about the difficulty that she is experiencing with Atif. Camilla has booked in for a series of pilates instructor classes in April and she is worried that the classes may not go ahead. Camilla speaks to Atif and promises him an extra £100 if he completes on time.

Question 1 continues on the next page

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Question 1 continued Atif hires the equipment and completes the job to the original schedule but then Bridget and Camilla refuse to pay him the money they promised, saying that he has only done what he originally agreed to do.

Advise Atif whether he can enforce the promises of additional payment against Bridget and Camilla.

2. Lee is a salesperson at Laptops. On Saturday 26th September 2019, Lee

approaches a customer, Mina, who tells him that she is looking to buy 5 new laptops for her staff to use in her online training business. Lee points to a new Toshiba laptop and tells her:

“the CPU in the Toshiba laptop outperformed Intel’s i7 processor. You

can read about it in the What Computer review from January which I recommend you read”

“it is the most reliable laptop on the market according to Office Review” “big companies are buying these laptops. They are going to be the national best seller in this niche of 2019.”

Mina tells Lee that she will think about it and leaves the store. She does not read the What Computer review.

On Tuesday, Lee reads a new review of laptop reliability published by Office Review and it places the Toshiba laptop in fifth place. On Wednesday, Mina telephones Lee and she places an order for 5 of the Toshiba laptops. Lee does not mention the new reliability review from Office Review.

Question 2 continues on the next page

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Question 2 continued At the beginning of January 2020, Mina approaches you for advice because she wants to return the laptops. She wishes that she had invested in Apple computers instead and wants to be able to return the Toshiba laptops. She tells you that:

(a) She has just read the What Computer review and Lee was wrong.

The CPU in the Toshiba laptop was outperformed by the Intel i7 processor.

(b) She has discovered that the Toshiba laptop is no longer the most reliable according to Office Review.

(c) End of year sales figures are now available and the Toshiba laptop is not the best seller of 2019, it is a HP laptop.

Advise Mina on any claim that she might have in misrepresentation against Laptops.

3. Jed is a farmer and he contracts with Pippa, a seller of agricultural

equipment. He contracts to buy a mechanical harvesting machine to attach to his tractor for £40,000. The machine is designed to harvest vegetables. During the negotiations he explained to Pippa that he had 20 acres of fields. During the negotiations, Jed stresses that he needs the harvester to be delivered by 15th May.

Pippa telephones Jed on 13th May and tells him that the machine will be delayed. Jed insists that Pippa performs on time but the machine is not delivered until 13th June.

Question 3 continues on the next page

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Question 3 continued Jed is furious and wants to make a claim against Pippa:

(a) He lost a large amount of British spinach crops that should have

been harvested in May with a market value of £700. The delay in harvesting ruined the crop.

(b) Jed was growing a small amount of a rare and highly prized Japanese spinach, Komatsuna, which he had agreed to sell to a Japanese restaurant for use in an upcoming festival of food. Due to a national shortage he had agreed an exceptionally lucrative price of £1,400 for the crop. The delay in harvesting ruined the crop.

(c) Jed wants compensation for the upset that this has caused him.

Advise Jed on his claim for breach of contract and the potential remedies.

END OF QUESTIONS