• 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)

    * Invitation to the tender is not an offer Local Government Act 1988 s.4(2) Spencer v Harding There was an "offer to sell by tender". Held such notice was invitation to treat. * Specific date to summit is stated on the advertisement of tender is no consider as an offer but the party on bound to consider the tender.

  2. Marked by a teacher

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

    3 star(s)

    Terms implied by statute Sale of Goods Act 1979. Sales of goods Act 1979 has been created by parliament to protect consumers, the key provisions are Section 12: the person selling the goods has to have the legal right to sell them.

  1. Four ways in which a contract may be discharged.

    the amount of any expenses incurred before the time of discharge by the benefited party in, or for the purpose of, the performance of the contract, including any sums paid or payable by him to any other party in pursuance of the contract and retained or recoverable by that party

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

    (a) it states that a person is not dishonest if the defendant believed they had a right in law. Section 2 (1) (b) states a person is not dishonest if he believes he would have the other consent and section 2 (1)

  1. What is the importance of implied terms to the contract of employment

    - that implied term would only apply if she were an employee under a contract of employment55. If vicarious liability were implied into the contract of employment it would mean that employees could be indemnified against a tort committed56; in general employers are not vicariously liable for the negligence of independent contractors57 or workers employed under various forms.

  2. Contract law - Advise Sarah - The first thing to ascertain is whether the ...

    In respect of Sarah's claim for the bike ride prize, an acceptance which is wholly motivated by factors other than the existence of the offer has no effect. 17 As the act of riding to Oxford was performed in ignorance of the offer, as she was going to Oxford anyway, she cannot make a claim.

  1. Invitation To Treat

    Bindley, the auctioneer selling the horse, to withdraw it. However, Bindley sold the horse in error. Mr. Felthouse then sued the auctioneer in the tort of conversion (a type of trespass to goods). The court held that the uncle could not succeed in his action because there was no binding contract with his nephew and so the horse did not belong to him.

  2. Contract Law, Scenario Assignment

    It was ruled that the contract became effective as soon as the letter of acceptance had been posted and the offerror had henceforth, breached the contract by selling the wool on a third party. With regards to Brown?s, if the sales manager had posted the letter on the Wednesday the

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