Contract question

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SRN: 090170579        School of Law

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Registration Number: 090170579 Date: 11-12-09

I have been asked to provide legal advice for Hard-Up Construction Ltd as to their contractual position regarding the events which took place during the time period between 2006 and 2007 with the University of South Yorkshire and Ms Barbara Ella. The University of South Yorkshire has accepted a building tender from Hard-Up Construction Ltd for £1,000,000, it became clear later on that this wasn’t enough to complete the work and asked for a further £600,000 on top of the original price. The University reluctantly agreed, but then declined to give the £600,000. The issue is surrounding the context of the second ‘agreement’; for Hard-Up Construction Ltd there has to have been a breach of the contract by the University for the courts to enforce this agreement. The next issue is that Ms Barbara Ella has promised to pay Hard-Up Construction Ltd £50,000 if they finished the work by March 2007; she is now refusing to pay. Again, Hard-Up Construction Ltd will have to prove a breach of contractual obligations has arisen. The area of law which both problems concern is the law of contract, it is probably best to deal with each issue separately.  With regards to contractual obligation, a contract is a voluntary choice/consent to create obligation from the other party. The courts have generally adopted an objective approach to establish whether there has been a meeting of minds, this attaches significance to external appearances rather than what was subjectively or internally intended. The authority for this case is The Hannah Blumenthal, where the Law Lords thought it was necessary to abandon a subjective approach.

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The first issue to be addressed is the establishment of a bi-lateral contract, this is where A is bound to do X and B is bound to do Y in return for the promise made by A. Another type of contract is that of a uni-lateral contract. This is where A makes an offer and assumes an obligation such as a promise to perform a certain act but B is under no obligation. This is where the contract has become one-sided; it does not mean that there is only one party involved. From the facts given in the scenario, a ...

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