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Question: “It is a mistake to see exclusion and limitation clauses entirely in [a] negative light. They can play an important (and positive) role in the regulations of risk.” McKendrick: Text, Cases and Materials). Discuss.

Grade 2:1 Law of Contracts. Year 1 LLB

Answer: Exclusion and limitation clauses, which will henceforth be collectively referred to as exemption clauses, are a means of excluding or limiting (respectively) liability in the event of a breach of contract. They...

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Details: - Mark: 65% | Course: Contract Law | Year: 1st | Words: 1258 | References: Yes | Date written: March, 2017 | Date submitted: May 08, 2017 | Coursework ID: 1025

Question: Contract Law Problem Question

Alice wished to buy an automatic dishwasher for use in her small teashop in Whitstable. She visited the showroom of Nixons Ltd, an electrical goods shop. She bought a Washrite 666 dishwasher for £750, which came with free installation. Alice signed the three-page contract provided by Nixons without reading it. The machine was delivered the next day and installed in the kitchen.

Alice was impressed with the quality of the service that Nixons had provided her, especially the speed of delivery and installation. She told her friend Parvi about this and Parvi, who needed a new washing machine and tumble dryer, decided to buy them from Nixons. At Nixons’ store, Parvi told the assistant that she needed machines that could cope with large loads of washing, as she had a big family, including her four sons who played football regularly. She ended up buying two machines, each of which said on the front and in their respective operating manuals ‘10kg load efficient’.

Five weeks later, Alice’s dishwasher started to make a loud noise and water leaked from it, causing damage to the kitchen’s floor, which she found would need to be entirely replaced, at a cost of £2000. She reluctantly did this so the teashop could reopen as normal as soon as possible. Replacing the damaged floor required her to close the shop for two days, causing Alice to lose profits. Alice called a plumber to look at the dishwasher, who told her that he could not be exactly sure what the problem was – the machine had either not been properly installed or was missing an essential part. He said that it would cost Alice £200 for him to investigate the problem further by looking in the machine itself, and up to £500 to fix it.

Alice returned to Nixons to ask them to pay for the damage to her floor, to compensate her for the profits she would lose, and to give her either the cost of having the machine fixed or a full refund for the machine so that she could buy a new one from elsewhere. She was told by the manager that paying the full cost of the replacement floor was not possible, nor a full refund for the machine available, nor compensation for her lost profits, because of the following terms of the contract:

“Clause 38: In the event of a machine or its installation being faulty, Nixons will provide a replacement product or service only. This clause will be invalidated if the customer has attempted to (or has employed someone outside of Nixons to) fix the item in question.”

Clause 39: Nixons will only pay damages of up to £200 for property damage caused by failure of its goods.

Clause 40: Nixons is not liable for any other loss or damage (including indirect or consequential loss, financial loss, loss of profits or loss of use) arising from the contract or from the goods or their use, even if we are negligent.

Parvi had no problems with her washing machine, but found that after three weeks of regular use, the tumble drier took far longer to dry her washing than she expected and regularly overheated when loads above 8kg were in it, causing it to cut out until it had cooled enough to restart. An electrician who she called to look at the machine could not identify the problem. She returned to Nixons and asked them to replace the tumble drier with an equivalent model of the same value. However, the manager refused to do so, pointing to clause 38, because the back of the tumble drier had been taken off and the heating elements inspected by the electrician. On her way out of the store, Parvi noticed a large sign on the wall that stated in bold print ‘all contracts entered into are subject to Nixons’ terms and conditions of business. Customers should be asked to sign a set of these terms at every transaction*.’ Wondering what the asterisk was for, Parvi went closer to the sign and saw, in small writing near the bottom ‘*This does not affect your statutory rights’. Parvi had not been asked to sign the contract.

Advise Alice and Parvi.

[Second-year, Contract Law, 2.1. UK LLB]

Answer: Alice Liability From the details provided in the PQ, we can surmise that Nixons is potentially liable for up to £2750 + compensation for Alice’s lost profits, due to a breach of...

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Details: - Mark: 65% | Course: Contract Law | Year: 2nd/3rd | Words: 2136 | References: Yes | Date written: February, 2016 | Date submitted: December 02, 2016 | Coursework ID: 994

Question: Nick is a supplier of eco home pods: mobile units providing accommodation, manufactured entirely from sustainable and renewable sources. The wood used in his designs is locally sourced cedar and is decorated with plant-based paints and varnishes.

Tony sells wood for floors and cladding. Nick in his discussions with Tony explains how the whole of his business depends on his reputation as an ethical builder and any deviation from his environmental policies would destroy his credibility in the eco home pod marketplace. Nick is therefore adamant that all wood is locally sourced and all varnishes and paints are plant rather than chemical based. Tony promises that this is not a problem and that he will be able to comply.

Nick and Tony enter a written agreement which specifies that the contract will last five years, the delivery dates, amounts, price and wood type. The contract is silent as to sourcing and paint/varnish requirements.

Three months into the contact, Nick discovers that when the locally sourced cedar is not available Tony has been making up the order with cedar sourced from Canada, but not charging any more for it. It also comes to light that all the wood finishes supplied by Tony use the same chemical-based varnishes and paints.

Advise Nick, who wishes to terminate the contract and recover potential damages.

Answer: Parties to a contract will determine certain terms between themselves. These terms are called express terms. During discussions and negotiations it can be hard to determine which parts of het negotiations were...

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Details: - Mark: 65% | Course: Contract Law | Year: 1st | Words: 1088 | References: Yes | Date written: February, 2013 | Date submitted: November 25, 2015 | Coursework ID: 939

Question: Does the market rule of damages assessment used in the sale of goods offend the fundamental
principle that damages are designed to compensate for a loss caused by the defendant's breach of contract?

Answer: A fundamental principle of damages is that the remedy should be sufficient to place the injured party in the position he would have occupied but for the wrong he has suffered.1 Judges...

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Details: - Mark: 65% | Course: Contract Law | Year: 2nd/3rd | Words: 2061 | References: Yes | Date written: July, 2011 | Date submitted: May 02, 2013 | Coursework ID: 786

Question: Is it inconsistent to argue that the aim of remedies for breach of contract is protection of the ‘performance interest’ while denying that specific performance should be the primary remedy?

Answer: The aim of all remedies for breach of contract, including specific performance, is to provide the claimant with a substitute for the performance he was promised under the contract. Thus the mere...

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Details: - Mark: 65% | Course: Contract Law | Year: 1st | Words: 1751 | References: No | Date written: Not available | Date submitted: April 24, 2011 | Coursework ID: 675

Question: Rob, a wealthy philanthropist, placed an advertisement in the 'Herald' newspaper offering to sponsor, at the rate of £1 per mile, anyone willing to walk to Manchester in aid of the Contract Lecturers' Benevolent Fund, a charity.

Elizabeth, who was already walking to Manchester in order to improve her fitness, heard about Rob's advertisement and decided to claim the sponsorship money on arrival in Manchester. Richard read the advertisement and decided to set out for Manchester, having first sent an email to Rob informing him that he intended to claim the sponsorship money. When Rob received Richard's email, he placed a second advertisement in the 'Herald' revoking his offer, which Yvonne, a friend of Richard told him about when he was half-way to Manchester. Meanwhile, Stewart, who had read Rob's first advertisement, set out for Manchester having decided to claim the sponsorship money, but did not hear of Rob's second advertisement.

Elizabeth heard of Rob's second advertisement before she reached Manchester and gave up her walk before reaching Manchester, but claimed to be entitled to £1 per mile for every mile she had covered. Richard completed the walk and claimed the sponsorship money, as did Stewart when he completed the walk.

Advise Rob.

Answer: Firstly, it is important to establish the nature of the advertisement. Is it an offer or an invitation to treat? An offer is usually regarded as ‘an expression of willingness to contract...

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Details: - Mark: 65% | Course: Contract Law | Year: 1st | Words: 2027 | References: Yes | Date written: Not available | Date submitted: September 27, 2010 | Coursework ID: 617

Question: Discuss the scope of the doctrine and remedies for frustration of contract in English law, in particular under the Law Reform (Frustrated Contracts) Act 1943 and in the use of ‘force majeure’ clauses. Is the law as it stands in a satisfactory state?

Answer: The courts have interpreted the scope of the doctrine of frustration narrowly, in accordance with the principle pacta sunt servanda – agreements must be kept. If the courts readily held that a...

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Details: - Mark: 65% | Course: Contract Law | Year: 1st | Words: 2608 | References: Yes | Date written: January, 2005 | Date submitted: February 18, 2009 | Coursework ID: 291

Question: CASE STUDY - Robert and his wife, Lucy, decide to take dance classes at a local Salsa dance club. They used to go to ballroom dance classes at the same club some years ago. Because Salsa has become so popular, they book the classes in advance. On the back of the receipt a printed clause says ‘For terms and conditions please see the notices in the club.’ On the inside of the club door a large notice is pinned up. The notice reads, ‘The club will not accept responsibility for any loss suffered by customers.’ At their first dance class, the dance instructor, Paul, who also owns the club, demonstrates an energetic step and falls over, knocking Robert to the ground. Robert’s arm is broken and his Rolex watch is damaged beyond repair. When Lucy goes to the cloakroom to get her coat, she finds that the coat has been stolen. Advise Robert and Lucy.

Answer: This scenario deals with the application of common law and legislation pertaining to the validity of exclusion clauses. In order to ascertain the validity of this exclusion clause in particular, the issues...

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Details: - Mark: 65% | Course: Contract Law | Year: 1st | Words: 1690 | References: No | Date written: Not available | Date submitted: February 18, 2009 | Coursework ID: 286

Question: Law of Contract – CASE STUDY. Mr. Taylor is sent a letter from D&M Rewards, in which it is stated that he is entitled to receive an item listed in it, on condition that he claims it before by contacting them via phone, text message or letter them within 9 working days in order to obtain a collection number. The purpose of this essay is to determine, in the first part, whether the leaflet of D&M Rewards could become part of a binding contract. On that assumption, assuming that a contract is formed, a second part will consist in determining when that occurs. The first step to reach a binding contract is to have an offer. Thus if we want to demonstrate that this leaflet can become part of a binding contract, we have to show that it is indeed an offer, and not an invitation to treat. Mister Taylor receives a letter from D&M Rewards, is this leaflet a form of offer or just an invitation to treat?

Answer: According to Treitel (2003), “an offer is an expression of willingness to contract on certain terms made with the intention that it shall become binding as soon as it is accepted by...

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Details: - Mark: 65% | Course: Contract Law | Year: 2nd/3rd | Words: 2602 | References: Yes | Date written: December, 2005 | Date submitted: February 18, 2009 | Coursework ID: 279

Question: Discuss the significant features of the Contract (Rights of Third Parties) Act. Is its Enactment to be welcomed?

Answer: It is important in the evaluation of any new development in the law to look at the situation that was in force previously. Only then is it possible to analyse the resultant...

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Details: - Mark: 65% | Course: Contract Law | Year: 2nd/3rd | Words: 3520 | References: No | Date written: Not available | Date submitted: February 17, 2009 | Coursework ID: 270

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