Exam August 2016, questions PDF

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Past Exam Paper for Contract Law , Past Exam Paper for Contract Law ...

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NORTHUMBRIA UNIVERSITY SCHOOL OF LAW

GRADUATE DIPLOMA IN LAW EXAMINATION FULL TIME AND DISTANCE LEARNING

CONTRACT LAW LA0545

Date: August 2016

Instructions:

Time allowed: 2 hours

SIX questions set. THREE questions to be answered as follows: Part A - At least one question to be answered. Part B - At least one question to be answered. The third question may be answered from either Part A or Part B. All questions carry equal marks (100 marks per question). THIS IS A CLOSED BOOK EXAMINATION

PART A At least one question to be answered from this part.

1. ‘Consideration remains a fundamental principle of the law and is not to be reduced out of existence by the law of estoppel’. Lord Toulson in Prime Sight Ltd v Lavarello [2013] UKPC 22. Critically discuss the relationship between consideration and the doctrine of promissory estoppel.

2. Lord Hoffman’s restatement of the law relating to the implication of terms in AG of Belize v Belize Telecom Ltd [2009] UKPC 10 failed to clarify this area of law. Critically discuss the above statement, with reference to decided cases.

3. Critically discuss to what extent, in the law relating to damages for breach of contract, is the relationship between the expectation interest and the reliance interest clearly stated in the case law?

PART B At least one question to be answered from this part.

4. Jim is about to move house. He invites some local removals firms to give him a quote for moving his belongings to the new house on the moving date, 1st July. On Monday 1st May, Mr Bloggs of Bloggs Removals visits Jim and having done some calculations says “we can do your removal on the moving date for £500 – let me know as soon as you can if you want to book us, we are getting booked up very quickly.” Later the same day, a sales rep from Adams Movers Ltd visits and, having made some notes, says “I’ll send you our formal quotation in the post. If you have any queries, ring or send me a text.” The sales rep gives Jim his company mobile number. On Tuesday 2nd May, the quote from Adams Movers arrives. It says “we would be pleased to carry out your removal on the moving date for a total price of £600. To confirm your booking please complete and sign the attached form and return it to our offices within 3 working days.” Jim immediately texts the sales rep from Adams Movers, saying: “the other firm has offered £500 – can you match or beat that price?” However, he receives no reply and so on Thursday 4th May he calls Mr Bloggs and accepts his offer. Mr Bloggs apologises and says that he is now fully booked for Jim’s moving date. Feeling desperate, Jim decides to go with Adams Movers after all. He completes the form and posts it on Thursday 4th May. The day before his moving date, Jim telephones Adams Movers’ offices to check what time they will be arriving to start the removal. Adams Movers have no record of his booking as they did not receive his completed booking form. They also have no record of the text message which Jim sent to the sales rep. Adams Movers cannot now assist Jim as they are fully booked for his moving date. Advise Jim on whether he has a contract with Bloggs Removals or Adams Movers.

5. Smollett, a businessman, is interested in acquiring the shooting rights over a grouse moor owned by Lord Durham. He intends to set up a business, offering visitors to the land the opportunity to shoot grouse. After visiting and shooting on the moor, Smollett emails Lord Durham expressing concern that there did not seem to be as many grouse on the land as he would have expected at that time of year. Lord Durham sends an email to Smollett reassuring him that the grouse counts carried out on the moor earlier that year indicated that there should be sufficient grouse for the shooting planned for next year. Lord Durham offers to send him a copy of the grouse counts, but Smollett says that it is unnecessary to do so. Smollett then signs a contract with Lord Durham for the shooting rights over the grouse moor for 10 years at £25,000 per year. Smollett’s business has been running for three months but he has now discovered that the grouse counts had been carried out in the most heavily populated areas, and that the grouse population was smaller than he had expected. He believes that Lord Durham deliberately exaggerated the number of grouse on the moor in order to encourage him to sign the contract. Advise Smollett on any remedies for misrepresentation he may have against Lord Durham.

6. James Cameron, a coach operator, has a one year contract to transport school children from rural villages in Northumbria to the school in Tipbury. The sum of £2,000 is paid at the end of each month (calculated at a rate of £500 per week for two trips per day over 5 days). Once children have been picked up from several villages the main access to Tipbury is via Valley Road approaching from the east. On Monday and Tuesday the journeys are completed without difficulty, but on Tuesday night torrential rains wash away the main road into Tipbury. James Cameron is unable to transport the children to school on Wednesday due to flooding. In order to transport the children to school the only other route is approaching Tipbury from the west and requires the coach setting off 1 hour earlier and driving an additional 25 miles to access the alternative route. James Cameron decides that the contract is no longer economically viable and wants to know what is the legal position. Advise James Cameron....