Homework answers / question archive / Module 2 – Law of Obligations: Contract Part 1 QUESTION 1 (TOTAL 40 MARKS) Answer all parts of this question Fatima has recently completed her Masters Degree in Computer Engineering

Module 2 – Law of Obligations: Contract Part 1 QUESTION 1 (TOTAL 40 MARKS) Answer all parts of this question Fatima has recently completed her Masters Degree in Computer Engineering

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Module 2 – Law of Obligations: Contract Part 1

QUESTION 1 (TOTAL 40 MARKS) Answer all parts of this question Fatima has recently completed her Masters Degree in Computer Engineering. Her father researched small computer companies for sale and told her to buy Bespoke Software Solutions Limited (“Bespoke”) and he would give her half the purchase price. On 30 May 2022, Fatima emailed Bespoke asking for complete financial records for the past three years. The owner of Bespoke, Billy Boggs, replied the same day that the company was doing very well and he attached accounts which showed that the company had made profits of £25,000 in 2020, £35,000 in 2021, and £45,000 in the year to 5 April 2022. For the year to 5 April 2023, he expected profits to exceed £60,000, and the company had £40,000 worth of stock. Billy Boggs said he was moving to the USA and that Bespoke was for sale at £600,000 if Fatima wanted to buy it as a going concern by no later than 6 June 2022. On the same day, Fatima accepted these terms and confirmed that she would pay £600,000 on 6 June 2022. In order to raise her half of the necessary funding, on 1 June 2022, Fatima advertised her antique Bugatti car for sale at £320,000, which her father had given her as a graduation present. On 2 June 2022, Jim James emailed her offering £250,000 for the car, which Fatima rejected on the same day. On 3 June 2022, Jim said he would pay £300,000 in cash, provided that Fatima accepted by email before 11 am on 4 June 2022 and he would collect the car and pay her £300,000 later that day. Fatima emailed Jim at 10.55 am on 4 June 2022 accepting £300,000. However, Jim responded at 4 pm on 4 June 2022 to say that his email server had not been working and he did not read Fatima’s email until 3.30 pm that day. Jim said that now he was only willing to pay £280,000. Fatima was shocked, but she was desperate for the money and she felt that she had no choice but to accept. Jim came and collected the car, but paid only £270,000. Fatima objected, but Jim simply drove away in the Bugatti. In the evening of 4 June 2022, Fatima asked her father for £300,000, being the half of the purchase price that he had promised her, and for a loan of £30,000 to make up the full amount of £600,000. He replied that £300,000 was excessive, and he lent her £200,000. Fatima had savings of £100,000 and she borrowed £400,000 from her bank at an interest rate of 8%. She went ahead with the purchase of Bespoke. However, she later discovered that the accounts that Billy Boggs had sent her greatly over-stated Bespoke’s financial position and the figures in fact represented turn-over, not profit: the company had never made a profit. Advise Fatima, explain your reasons and support them with legal authorities: A. Can Fatima bring a claim against Jim James, and if so, for how much? 15 marks B. Can Fatima bring a claim against Billy Boggs, and if so, for how much? 15 marks C. Can Fatima bring a claim against her father, and if so, for how much? 10 marks

Module 2, Law of Obligations – Contract – Part 2

ANSWER ALL THREE QUESTIONS, EACH QUESTION IS WORTH 20 MARKS

QUESTION 2 20 marks. Amanda Honwana creates fantastic flower arrangements for celebrity weddings. Bella Longina, a famous Italian actress, is due to marry Harry Handsome, lead singer with the rock band Handsome Harry. Bella asked Amanda to provide ten large flower arrangements to be installed at Wedding Reception Hall on the morning of the wedding, and a white rose for each of the 200 female guests. Amanda discussed with Bella as to exactly what flower arrangements she wanted, and explained that she always required payment in full in advance. Amanda sent Bella a contract which included the following provisions: “Ten flower arrangements as agreed: £10,000; One white rose each for 200 guests; £2,000; Payment is required in full in advance; Please sign and return this contract and attach payment in full.” Bella signed the contract and sent Amanda a cheque for £12,000. Amanda placed orders with her flower supplier, Wedding Flowers Limited, whose terms of business were: payment of 50% when placing an order, the balance payable on delivery; cancellation 48 hours in advance, full refund: cancellation 24 hours in advance, 50% refund: cancellation less than 24 hours in advance, 25% refund. Amanda paid a 50% deposit of £4,000. Three days before the wedding, Bella told Amanda that she wanted 200 red roses for the male guests. Amanda replied that the price would be £2,000 and that Bella could pay when they met at Wedding Reception Hall to install the 10 arrangements. Amanda ordered 200 red roses from Wedding Flowers and paid a deposit of £600. Two days before the wedding, Bella told Amanda that there would be only 100 male and 100 female guests at the wedding. Amanda cancelled 100 white and 100 red roses from her order with Wedding Flowers. Amanda went to Wedding Reception Hall to install the 10 flower arrangements. Bella arrived late, very angry, and said that Harry Handsome was a terrible man and she could not possibly marry him, the wedding was off and Amanda was to cancel all the flower orders.

A. Is Amanda entitled to any refund from Wedding Flowers Limited, and is she obliged to make any further payment to Wedding Flowers? 12 Marks

B. Is Amanda entitled to any further payment from Bella, and is she obliged to make any refund to Bella? 8 marks.

QUESTION 3 20 Marks in Total A. When a contract is “discharged”, neither party need perform any future obligation. Explain the ways in which a contract may be discharged, in both common law and civil law. 10 Marks. B. Explain the difference between a condition and a warranty in English contract law and the remedies available for each. Is the position different under the civil law? 10 Marks.

QUESTION 4 20 Marks in Total

A. Explain the meaning of the term “remoteness of damage” in Common Law. Is the position different under the Civil Law? 12 Marks.

B. In common law, an injured party is under an obligation to mitigate his loss. Explain what “mitigate” means. Is there such an obligation in civil law? 8 Marks

 

 

MODULE 2 LAW OF OBLIGATIONS - TORT – PART 1

QUESTION 1 TOTAL 40 MARKS Answer all parts of this question Jerome went to the cinema in central London, where he saw a rather depressing film which made him consider his own mortality. It was late in the evening when Jerome collected his bicycle and started riding home. He was distracted briefly by a man on the pavement who shouted something at him. He turned left into a side street and was hit by a car driven by Felicity on the wrong side of the road at 20 miles per hour above the speed limit without the headlights on. As a result, Jerome had serious head injuries. Paul was driving his girlfriend Jane home and they were having an argument and Paul was not paying attention to the road ahead of him. He did not notice Jerome lying in the road and accidently drove over Jerome’s left leg. Felicity tried to get her car out of the way, but bumped into Paul’s car and damaged it. Although neither Paul nor Jane was injured, Paul had a very valuable painting lying on the back seat of his car and the painting was ruined. Jerome was rushed to hospital unconscious. The doctor found that Jerome’s skull was unusually thin, which made his head injuries even more serious. The doctor gave Jerome antibiotics, but because Jerome was unconscious the doctor was unable to ascertain that he was allergic to antibiotics. Jerome suffered a serious allergic reaction and was in a coma for two weeks. Jerome’s left leg bone, which was unusually brittle, was badly shattered. Jerome’s mother, Jane, visited him in hospital and was so shocked that she suffered a nervous breakdown and was taken into hospital herself. Felicity says that she was driving her husband’s car at the time, she was not familiar with it and the controls were in a different position to those on her own car. She also says that it was all Jerome’s fault because he was not paying attention when he turned left into the side street. Candidates should not be concerned with any possible criminal charges, only with the tort of negligence. A. Advise Jerome as to what claim he can bring against Felicity. 12 Marks. B. Advise Jerome as to what claim he can bring against Paul. 8 Marks. C. Advise Jane as to what claim she can bring against Felicity and/or Paul. 12 Marks. D. Advise Paul as to whether he can bring a claim against anyone. 8 Marks. TORT EXAMINATION PART 2 ANSWER ALL THREE QUESTIONS, EACH QUESTION IS WORTH 20 MARKS Explain your reasons and support your answer with references to legal authorities

QUESTION 2 20 Marks in Total In the tort of private nuisance, explain: A. What is meant by the requirement in common law that “the Claimant must have an interest in the land”? 4 marks. B. What is meant by the requirement that nuisance must amount to “unreasonable interference with the use and enjoyment of property”? 8 marks. C. Who may the Claimant bring a claim against? 4 marks. D. Is the position different in Civil Law jurisdictions? 4 Marks.

QUESTION 3 Explain the meaning of the term “pure economic loss” and in what circumstances it may be claimed in the tort of negligence in common law. Is the position any different under the Civil Law system? 20 marks.

 

QUESTION 4 In relation to “causation” in the law of tort, in both Common Law and Civil Law: A. Explain the meaning and effect of the “but for test”. 10 marks. B. Explain the meaning of novus actus interveniens and the term “breaking the chain of causation”. 10 marks.