• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Law of Contract - Question and answer.

Extracts from this document...


Law of Contract Past Paper Question (11/99) Michelle is at University, studying to be a veterinary surgeon. David, a close family friend is also a veterinary surgeon. Whilst away at University, Michelle received a letter from David, saying that he was due to retire in a few weeks' time and that he wondered whether she would be interested in buying his veterinary equipment for the bargain price of 500 pounds. His letter asked for a prompt reply as a junior partner in his veterinary practice was also interested in buying the equipment, albeit at a higher price. Upon receipt of David's letter, Michelle decided that she would like to buy, but she would need to borrow the money. In order to speed matters up, she then wrote to David expressing a firm interest, but asking if he would be prepared to accept payment by instalments. Her letter got lost in the post and was never received by David Not having heard from David, Michelle arranged a bank loan and then posted a second letter, enclosing a cheque for 500 pounds. ...read more.


One could refer to the case of Harvey v Facey of 1893 where, similarly, a salesman informs the claimant, through the means of a telegram, of the price of a piece of land he intends to sell. The defendant writes: 'Lowest price for Bumper Hall Pen �900.' The claimants respond to the telegram expressing their acceptance of the salesman's statement and their desire for the title deeds to the property. The defendant however, does not reply to this telegram and the claimants sue. It was held that there was no contract on the grounds that the salesman's telegram was not an offer, but was in the nature of an invitation to treat at a minimum price of �900. Michelle's initial letter may be deemed a mere expression of interest and request for additional information as to the method of payment she may employ. Though through the sending of the letter she attempts to negotiate terms, due to inefficiencies in the postal service, Michelle fails to adequately communicate this intent. ...read more.


The law does not necessarily recognise the existence of a contract simply because of the presence of mutual promises. It is also necessary to establish that both parties entered the agreement with the intention of creating legal relations so that if the agreement were broken, the offended party would be able to execute legally enforceable remedies. In line two of the scenario, David is referred to as 'a close family friend'. Agreements with relations of this manner are not normally imagined to be subject for litigation. In addition to the relationship of the parties, is the immense sense of ambiguity present throughout the scenario. The court may, on these grounds declare the agreement void with the presumption that there was no intention to create legal relations (Gould v Gould 1969). After keenly examining the scenario with the application of knowledge of the different elements of agreement, it may be concluded that a contract did not exist between David and Michelle because of the deficiency of those factors essential to the formulation of an agreement. The lack of contractual implications thereby greatly inhibits the possibility of a successful pursuit against David. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Law of Contract section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Law of Contract essays

  1. Marked by a teacher

    Contract Law - Offer And Acceptance

    3 star(s)

    Blackpool Aero Club v Blackpool Borough Council (1990) BBC invited tenders to operate an airport, to be submitted by noon on a fixed date. The plaintiffs tender was delivered by hand and put in the Town Hall letter box at 11am.

  2. Marked by a teacher

    In this Assignment I am going to describe the requirements of a valid contract ...

    3 star(s)

    Customers can seek redress if they believe provider has committed a breach of any of these imp-lied terms. In any of these, the customers may be allowed to exchange the product for another in the same organisation it has been purchased within a certain period of time, get a refund

  1. Marked by a teacher

    A contract by definition is an agreement between two parties by which both parties ...

    3 star(s)

    potential buyers to come make an offer, which makes whoever is interested in her shortbread the offeror, and in this case Eric who had replied to her advert. Therefore, Viv is the offeree, so acceptance lies upon her. although the case of Eric V Viv Windsor can be easily mistaken

  2. Offer and Acceptance

    On finding out about this reward he tried to claim it. It was held that because he was unaware of the existence of the reward, he could not accept it and the man was not required to pay the reward.


    Williams gave the claimant that date in good faith. The claimant allowed �290 part exchange. It was later discovered to be a 1939 model and was worth only �175. The claimant sued for the balance, claiming that the year was a term of the contract. (d) Has the maker of the statement advised the other party to verify the accuracy of the statement?


    cant but it will be down to the courts to decide if it is acceptable or to the extreme. This is because such terms can be abusive so are scrutinised by Scottish courts and judges will tend to display a suspicious attitude when asked to consider contracts with restraints of trade.

  1. Invitation To Treat

    However, if the advertise makes it clear that he or she is prepared to be bound in certain circumstances, an advertisement may be constructed as an offer. The importance in distinguishing between offers and mere invitations to treat lies

  2. Write a critical evaluation of the elements of any two property offences

    This is reflected in the case of Gomez (1993) where the consent of the owner is immaterial which is bound to cause a chorus of disapproval. Firstly this expansive definition does not match the aims set out by the Criminal Law Revision Committee who proposed only unauthorized acts are taken

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work