Professional Documents
Culture Documents
LLBL1001
Module Outline
2023-2024
Contents
1. WELCOME TO THE LAW OF CONTRACT................................................................................................ 2
2. ATTENDANCE POLICY.................................................................................................................. 3
3.1 AIMS.............................................................................................................................................................3
4. CONTACT DETAILS........................................................................................................................ 4
5. CONTACTING US............................................................................................................................ 4
7. ASSESSMENT...................................................................................................................................... 7
8. SEMINARS........................................................................................................................................ 11
9. FEEDBACK........................................................................................................................................ 49
10. REFERENCING.............................................................................................................................. 49
This Module Outline is designed to give you some key information about your studies on this
module. The Law of Contract is a foundation subject which lies at the heart of most
transactions and agreements entered into every day. An understanding of contract law is
crucial to our understanding of our rights and duties at work, in the home, when shopping or
on holiday. In fact, it is very difficult to think of an aspect of modern life which is not in some
way regulated or affected by contract law.
If you understand contract law, you are in a good position to begin to understand other areas
of law such as Employment Law, Commercial Law and Company Law.
The module is assessed by means of a problem assignment and an exam. You will be given
help and guidance throughout the course to ensure you are well prepared for them.
The Blackboard Learning System should be checked regularly to access module materials and
view any announcements from module tutors. To access this, log onto the University network,
go to the ‘Student On-Line Environment (SOLE)’ page, and click on the ‘Blackboard Learning
System’. You’ll then need to log on using your student login and password. This will lead you
to a list of modules you are currently taking. Some useful references will be uploaded, so
please check the module homepage regularly.
Please enjoy the course, work hard and you will learn a lot from it.
You are expected to attend all taught sessions on this module and to participate in all
independent study tasks directed by module tutors.
In the event that you are unavailable to attend a session for whatever reason, you should email
the module leader regarding the absence either prior to the time of the session or as soon as is
practicable afterwards. The email should specify the time(s) of the session(s) missed and the
module code (LLBL1001 in this case).
3.1 Aims
Contract law is one of seven foundation subjects required in a qualifying law degree. The
study of contract is the basis for all commercial law. The module covers the formation of the
contract, contractual terms, vitiating factors that can defeat a contract and remedies for
contractual breach. The law is taught in both a practical and a theoretical context and
explores the historical development of contractual doctrine as well as the case law and
relevant statutory material.
1. Demonstrate a good understanding of the various doctrines that underpin the law of
contract.
3. Place contract law within a wider social, economic and historical context.
The course will be taught using a combination of lectures and seminars. These demand your full
attention.
Mobile Phones
Please switch your phone off in class and put it out of your sight. Please avoid using your phone
for any purpose in class as it distracts you, other students and me! You are always free to leave
the room if you need to make or take an urgent call. You are free to use your mobile phone
during breaks.
4. Contact Details
5. Contacting Us
You can contact module tutors at any time by email. We aim to reply to emails promptly and
this would normally be within 2 working days. You should not expect to receive replies during
evenings, at weekends or on days when the University is closed (e.g. over the Christmas/New
Year period). Again responses may on occasion be affected by abnormal circumstances such
as staff illness, conference attendance or a period of annual/research leave.
We also have an office hours system enabling you to see members of the team at designated
times throughout the week.
You can contact staff by email at any time to organise tutorial assistance.
Week
Session Title and Description Assessment Submission
beginning
18/09/2023 Welcome Week
25/09/2023 1 Lecture Module Overview and Introduction
Seminars
02/10/2023 2 Lecture Elements of a Contract - overview
Seminars
09/10/2023 3 Lecture Offer
Seminars
16/10/2023 4 Lecture Acceptance
Seminars
23/10/2023 5 Lecture Consideration part 1
Seminars
30/10/2023 Progress week
06/11/2023 6 Lecture Consideration part 2
Seminars
13/11/2023 7 Lecture Promissory Estoppel
Seminars
20/11/2023 8 Lecture Express Terms
Seminars
27/11/2023 9 Lecture Feedback on Formative/Guidance on
Summative
Seminars
04/12/2023 10 Lecture Implied Terms
Seminars
11/12/2023 11 Lecture Exclusion Clauses/Unfair Terms
Seminars
18/12/2023 12 Lecture Misrepresentation
Seminars
25/12/2023 -
Christmas Break
01/12/2024
08/01/2024 -
Assessments/Revision/Mid-Year Review
15/01/2024
22/01/2024 13 Lecture Common Mistake
Seminars
29/01/2024 14 Lecture Unilateral Mistake
Seminars
05/02/2024 15 Lecture Duress & Economic Duress
Seminars
12/02/2024 16 Lecture Undue Influence
Seminars
19/02/2024 17 Lecture Exploitation of Weakness
Please note, the above is a rough guide only. It may be subject to changes due eg to external speaker
visits, staff illness, speed of student learning, legal, political and University developments and
unforeseen circumstances.
Room information: Students are advised to check room details on the Live Timetable System link on
the UW website Student portal.
Should on occasion class cancellations be necessary, notifications will be made in accordance with the
Class Cancellation Policy, which can be found here.
Harry walks into town quite depressed. However, as luck would have it, he sees a large advert
on the side of the street.
It says: “Stinking House? Don’t worry, we can help. Buy our new magical air freshener spray
‘Pong – Be – Gone’. Use the spray twice a day for 7 days and your house will smell as fresh as
a daisy! We at the Windsor Cleaning Company Ltd (“the company”) are so sure that it will
work for you that we will allow anyone who buys the product and is still left with a stinky
house (despite using it as directed) to claim £100. As a sign of our good faith, we have
deposited £10,000 in the Worcestershire Savings Bank Ltd. Buy ‘Pong-Be-Gone’ now and smell
the difference in your life!”
Delighted by this new sign of hope, Harry rushes into the local general store and buys the
product. However, despite using the spray as directed for 7 days, he finds his house is as
smelly as ever. He phones up the company and claims his £100 compensation. However, the
company explain to Harry that there is no compensation owed to him. They say that the
advert was just to generate interest in the product and created no legal rights for anyone.
Harry feels cheated as he thought they had promised the money if the spray did not work.
Advise Harry.
The word limit is 700 (+/- 10%). Footnotes and bibliography do not count against the
word count.
You must provide a full bibliography of all sources (paper and online) used in preparing
your answer. Please include your student number (but not your name) on your paper.
You must submit your work by the deadline in the PLSE Module Outline . All work must
be submitted online via Turnitin on the PLSE Blackboard.
Full instructions and details on how to submit can be found in the PLSE Module
Outline.
‘Mountain bike for sale. Almost brand new, aluminium frame, 8-speed. Will sell for £400.
Email me at wes@mountainbikeforsale.co.uk.’
On 1st February, Wes receives a telephone call from his friend, Barney, who states that he is
willing to buy the bicycle for £300. Wes tells Barney that he will sell the bike to Barney for no
less than £350. Barney asks for time to think about it and Wes tells Barney that he will give
him until 4th February to decide.
Clara decides to buy the bike. On 2nd February, she posts a letter to Wes stating that
she will pay £400 for the bike. The letter arrives on 5th February. However, on 3rd February,
Clara changes her mind about buying the bike and she posts another letter to Wes stating that
she does not want to buy the bike. This letter also arrives on 5th February.
On 3rd February, Darius emails Wes stating that he would like to buy the bike for
£400. However, Darius has not paid his electricity bill and Darius loses his internet connection
as his electricity is cut off at the moment that he clicks 'send'. The email does not send and
instead goes into Darius' outbox. Darius does not notice this.
On 5th February, Barney telephones Wes and states that he is willing to pay £350 for the bike.
However, Wes tells Barney that he has sold the bike to Clara.
Advise Wes as to whether he has formed a binding contract with any of the parties.
Further information
The word limit is 2,000 words (+/- 10%). Footnotes and bibliography do not count
against the word count.
You must provide a full bibliography of all sources (paper and online) used in preparing
your answer. Please include your student number (but not your name) on your paper.
You must submit your work by 3pm on Monday 8 January 2024. All work must be
submitted online via Turnitin on Blackboard.
1. Demonstrate a good understanding of the various doctrines that underpin the law of
contract (in particular the law of consideration)
2. Understand and explain the substantive principles of contract law (in particular the
law of consideration).
Identifies all the major Identifies Identifies the Identifies some Identifies few Identifies very few
relevant issues and virtually all of majority of the major issues – relevant major or or no relevant issues
most minor issues. the major major issues answers at the minor issues
Identification Students in this mark relevant issues and some minor upper end may also
of the issues range may identify and some issues. identify some minor
relevant issues that minor issues. issues.
have not been
anticipated.
Outstanding or even Good or very Sound use of Acceptable use of Poor use of English Very poor use of
exemplary use of good use of English with English with with many English with many
English with no English with some significant grammatical, grammatical,
significant few grammatical, grammatical, spelling or spelling or
grammatical, spelling grammatical, spelling or spelling or punctuation errors. punctuation errors.
or punctuation errors. spelling or punctuation punctuation errors, Very little evidence Little or no evidence
Exceptionally clear, punctuation errors. Some but work remains of clear concise and of clear concise and
concise and accurate errors. Clear, evidence of comprehensible. accurate legal accurate legal
Writing and legal writing using concise and clear, concise Adequate writing. Inadequate writing. Inadequate
presentation appropriate accurate legal and accurate referencing and referencing and referencing and
terminology. Excellent writing using legal writing bibliography. bibliography. bibliography.
referencing and appropriate and some use
bibliography where terminology. of appropriate
appropriate. Good terminology.
referencing and Reasonable
bibliography referencing and
where bibliography.
appropriate.
Learning Outcomes
- Understand the basic idea of a contract and the theoretical underpinnings of this area of
law
- Compare and contrast contract law with other areas of law
- Critically consider the arguments relating to the harmonization of contract law across legal
jurisdictions
Required Reading
Janet O’Sullivan & Chapter 1 (para Some copies are available in the
Jonathan Hilliard, 1.1 to 1.26) Hive. You may wish to buy your
The Law of own copy.
Contract (10th edn,
Oxford University
Press, 2022)
Additional Reading
Seminar Questions
3 How does contract law overlap or conflict with other branches of law?
5 To what extent will BREXIT affect the future use and development of English contract law?
6 To what extent (if at all) is contract law interested in the idea of fairness? Is an unfair
contract legally valid?
Required Reading
Additional Reading
Seminar Questions
2 To what extent must terms of a contract be certain before the contract is valid?
4 Explain the different presumptions the law makes regarding intention to create
legal relations in: a. domestic and b. business contexts.
a. Steve agrees to meet Bill for a business lunch at which they expect to agree
the new teaching timetable for the academic year?
b. Tony is looking for casual work as a labourer. One morning he waits in the
car park of his local DIY superstore where a local builder drives up in his white
van and offers him a day's work on his building site. Tony readily agrees.
d. Bill, Ben and Jerry agree to play the Euromillions lottery every Friday. They
each pay a third of the ticket cost and understand that if they win, they will
share the money.
e. The Print Workers Trade Union agree that they will never call a strike of their
members if the Newspaper Co Ltd agrees never to make any redundancies?
f. Bill and Steve agree to negotiate in good faith to make Steve a Professor in
Law in return for Steve taking on more duties in the School of Law?
Learning Outcomes
- Describe what is an offer and why the law requires a contract to be based upon an offer
- Explain how an offer differs from an invitation to treat and a request for information
- Apply the legal definition of an offer to problem scenarios
Required Reading
Additional Reading
Seminar Questions
4 What is the ‘objective test’? Why does the law use an objective test to decide if an offer
has been made?
b. Bill has lost his dog! He puts up a poster on local lampposts stating “£500 reward if you
find and return my lost dog.”
c. Cheapo Supermarkets Ltd put an advert in the local newspaper stating “Special Offer:
10% off the price of all white wine this week.”
d. Janeen promises that she will meet her friend Anita for lunch at 1pm on Thursday.
e. Fred offers to sell his sofa to Jane for £300. Jane replies by asking Fred if he would be
able to deliver the sofa free of charge?
f. Fred offers to sell his sofa to Jane for £300. Jane replies by saying: “No way, but I will
buy it for £200.”
Learning Outcomes
Required Reading
Additional Reading
Seminar Questions
2. Explain the ‘postal rule’? Is the rule still useful in the modern digital world?
4. How and exactly when does one accept an offer of a unilateral contract?
6. Eric, an eccentric millionaire, promises on his personal website to pay £1m to anyone who
climbs to the top of the Cathedral Tower while singing “God Save the Queen” on St
George’s Day 2019. Helen, Dianne and Jack decide to take him up on the challenge. Helen
is not too fit so gives up half way up the Tower. Dianne is super fit. She also climbs half
way up the Tower however she then receives a tweet from Eric saying that he was only
joking and there is no £1m prize. Jack climbs to the top of the Tower while singing as
required. He does not see or hear of the tweet until he reaches the top of the Tower.
Advise Helen, Dianne and Jack on whether or not they have a contract with Eric.
Learning Outcomes
Required Reading
Pp 110-124
Additional Reading
Seminar Questions
2 ‘Consideration must be sufficient but need not be adequate’ – explain this phrase.
3 To what extent can a party rely upon the following as valid consideration:
Seminar 6:
5 What is the general rule regarding a party’s ability to rely upon an existing contractual
obligation to the other party as being good consideration in return for a new promise?
6 Explain the rule in the case of Williams v Roffey Bros & Nicholls (1990). Is this rule
consistent with the case of Stilk v Myrick (1809)? If so, how?
7 Does the doctrine of “practical benefit” from Williams v Roffey Bros & Nicholls (1990)
apply to cases of part payment of debts? Does the Court of Appeal decision in MWB
Business Exchange Centres Ltd v Rock Advertising Ltd (2016) and the subsequent
comments about the issue in the Supreme Court appeal (2018) help to clarify or confuse
the issue?
8 Should new consideration be needed for agreements to vary an existing contract? What
are the arguments for and against?
9 David is getting some roofing work done on his house. The company he uses, Fiddlers on
the Roofers Ltd, agree to carry out the work for £3,000. They expect the work will take
four days and start on Monday. However, at the end of Tuesday, it is clear to David that
the work is going much slower than predicted. He is anxious to get the work finished as
soon as possible as he is having a party for all the neighbours to show off his new home to
them on Friday evening. All the invitations have already gone out and caterers have been
booked.
The company apologises but says the slow progress is due to staff illness. David promises
the company an extra £500 if they can guarantee to finish the work on time i.e. by the end
of Thursday. The company agrees to this and uses the extra money to hire an extra roofer.
The work does get completed on time. However, David is now refusing to pay the extra
£500 which he promised.
Advise the company on whether they can successfully sue David for the money.
Required Reading
Additional Reading
Seminar Questions
1. What view does the common law take of agreements to accept less ie a lower level of
contractual performance? Are they enforceable?
3. If the doctrine of PE does apply, what effect does it have on the promissor’s ability to enforce
the original agreement?
5. Karl and Jack run a dog grooming business, Tidy Pouch Ltd. They rent out a small shop on the
High St in the city. They rent their premises at a rent of £2000 a month from Mr Rigsby the
landlord. At first, business is booming. Karl and Jack’s services get rave reviews and customers
flock to their shop. However, the local council decide to carry out major road works on the
High St which will mean that customer on road parking will be very limited for at least 8
months. Tidy Pouch Ltd’s business is very badly affected as customers struggle to find parking
to drop off and collect their dogs.
In desperation, they plead with Mr Rigsby to lower the rent temporarily. This he agrees to do
by £1,000 per month “until the road works are over”. After 5 months, ahead of schedule, the
road works are complete. Business returns to normal levels as customers can now park easily.
Karl and Jack decide not to tell Mr Rigbsy immediately about the end of the roadworks as
having a lower level of rent has allowed them to pay off some business debts that had been
incurred over the previous 5 months.
After 8 months Mr Rigbsy visits the High St and sees that the works are complete.
Advise Mr Rigsby on his ability to (a) sue for the arrears of rent which have built up over the
past 8 months and (b) put up the rent back to its original level with immediate effect.
Learning Outcomes
Required Reading
Additional Reading
Seminar Questions
1. Explain the difference between a term and a mere representation. Why does it matter?
2. In what ways are: a. oral and b. written express terms incorporated into a contract?
3. What is the parol evidence rule? Are there any exceptions to it?
4. Compare the traditional and modern approaches to the interpretation of written contracts.
Which approach do you prefer and why?
5. How relevant is evidence of the parties’ pre-contractual negotiations when interpreting the
contract?
6. Janet is looking to join the local Hereford Ladies Yoga Club. She visits the Club premises and
speaks to a receptionist. She explains her need for the membership fees to be affordable and
for her to be able to change classes often at short notice without being subject to a financial
penalty – this is because her finishing time at work is often unpredictable.
The receptionist reassures Janet that they are eager to have her custom and are happy to
agree with her a 10% discount on fees for the first year of membership. Also, the receptionist
says that they are prepared in her case to waive any cancellation fee that normally applies to
classes being cancelled. Happy with these reassurances, Janet signs the membership
application form which the receptionist fills in. Janet does not bother to read the terms and
conditions written on the back of the form.
A couple of weeks later, Janet receives through the post her first monthly invoice but it shows
no discount of 10%. Also, having had to cancel a class at short notice last week, Janet is
surprised to see that a £10 late cancellation fee has been applied to her account.
Advise Janet in relation to the terms of her contract with the Club.
Learning Outcomes
- Explain the different ways in which terms may be implied into a contract
- Be aware of the main terms implied into contracts by the Consumer Rights Act 2015
- Apply your understanding to a problem scenario involving a consumer contract
Required Reading
Additional Reading
Seminar Questions
3. Explain the relationship between implied terms and express terms. Which type of term has
priority?
4. What are the mains terms implied into a consumer contract by the Consumer Rights Act 2015?
6. Indira is looking to buy a set of walking boots in preparation for her summer holiday in the
Swiss Alps. She visits her local Outdoor Life shop on the High Street. She explains that she
intends to do quite a lot of mountain hiking and needs the boots to be strong and sound. Toby
the shop assistant reassures Indira that the ‘May Climber’ boots are the ideal ones for her and
that she will have no trouble with them. Indira decides to buy the boots.
She also explains that she needs a walking stick to help her with the particularly steep parts of
the climb. Toby again is happy to recommend that she chooses the ‘Rambler Extraordinaire’
walking stick. Again, Indira is happy to accept his recommendation.
However, on arrival in the Alps, Indira is very soon disappointed. The boots start to leak and let
in water after only 2 days of mountain climbing and the walking stick has broken into two
pieces. It appears that there was a fine fracture in the wood which Indira may have noticed if
she has chosen to examine the stick in the shop before buying it.
Advise Indira.
Learning Outcomes
Required Reading
Additional Reading
Seminar Questions
1. What role does the common law have in regulating exclusion clauses?
2. To what extent is it possible for a party to exclude liability for negligence under the common
law tests?
3. What is the test of reasonableness under UCTA 1977 and how does the court decided whether
the test has been satisfied?
5. Why are certain terms exempt from being assessed for fairness under the CRA 2015?
6. Dave decides he needs to lose weight and get fit. He drives to his local gym “Worcester Beach
Bodies Gym Ltd” and asks to become a member. The receptionist hands him a new member
form. On the back of the form in small print is a set of “Terms and Conditions of membership”.
He does not turn over the form to see this but simply signs where indicated at the bottom of
the form.
In a fit of new member enthusiasm, Dave gets through his induction session and immediately
starts to use the fixed weights machine. Unfortunately, due to lack of maintenance, the safety
guard over the weights is missing and Dave injures his fingers trying to adjust the level of
weights in readiness for a session. Upset by having an accident on his first visit, Dave ends his
session and changes back to his normal clothes.
Sadly, on returning to his car in the gym car park, he sees a big dent in the side of the driver’s
door. A passer by tells him this happened when the gym sales manager parked his car in a rush
to get back from lunch in time for a new member appointment.
Dave angrily rushes back to the reception and complains. However, the gym receptionist
points to clause 9 of the contract he recently signed: “The Company accepts no liability for any
damage to property or injury caused to guests, members or visitors by the use of any
equipment on gym premises whether caused by the Company’s negligence or otherwise.”
She also tells him that a notice at the entrance to the car park excludes any liability that the
Company might have for any damage to vehicles whilst parked in the car park. However, Dave
had not seen this sign when he entered the car park as it was obscured by overgrown bushes.
Advise Dave on whether he can successfully sue the Company (a) for his injured fingers and
(b) for the damage to the car door.
Learning Outcomes
Required Reading
Additional Reading
Seminar Questions
2. Why doesn’t English law recognise a general duty of pre-contractual disclosure? Should it?
3. Explain the remedy of rescission for a misrepresentation. What are the bars to rescission being
available?
4. Compare and contrast the damages’ remedies possible under: a. common law, b. s2(1) of the
Misrepresentation Act 1967 and c. s2(2) of the 1967 Act?
6. Ahmed has decided to sell his award winning Indian Restaurant and retire abroad. He is
approached by another restaurateur Afzal who is interested in buying the business. Ahmed
tells Afzal in his discussions leading up to the sale of the restaurant that: a. The restaurant is
able to accommodate 50 diners at any one time, b. that it is rated 5 stars in the AA best
restaurant guide and c. It serves the finest food in the whole of Worcestershire.
Separately, Ahmed has asked for a loan from Anita who is an independent investor from
Shropshire. He has told Anita that he wants the money to invest in new kitchen facilities at the
restaurant. This statement reassures Anita that Ahmed will be able to repay the loan from his
increased income from the improved restaurant – however, in reality, he intends to use the
money to pay off some debts and use the balance to kick start his luxury retirement plans
abroad.
Afzal signs a contract to buy the restaurant business. It includes an entire agreement clause
saying that the terms of the contract are entirely as detailed in the written document.
A few weeks after buying the business, Afzal discovers that the restaurant can only safely
accommodate 40 diners at a time, it has only ever been rated as 3 stars in the AA guide and
there had been repeated complaints about the quality of the food by customers. Anita has
now also learnt that none of the money that she lent to Ahmed has been invested in the
business.
Learning Outcomes
Required Reading
Pp 689-720
Additional Reading
Pp 507-523
Seminar Questions
Seminar 13:
Seminar 14:
6. Kim is selling her vintage MG sports car. She puts an advert in the local newspaper giving her
address and mobile phone number. Two days later, a young man is dropped off by a chauffeur
driven Bentley, knocks on her front door and asks to see the car.
After showing him the car in her garage and discussing its specification, he says that he
absolutely loves it and wants to buy it. He hands her his business card which states he is “Joey
Wessex – reality TV star”. Kim is a devoted viewer of high quality reality TV and already
suspected that it was Joey Wessex as he was the spitting image of him. Slightly star struck, Kim
realises that she should nevertheless not just rely on seeing a business card and asks him if he
has any other ID. He shows her a TV studio access card with the name “J Wessex” and the
man’s photo on it. She notes down the phone number on the card and hands it back.
Delighted that she is in the presence of a real star, she agrees to let him drive the car home on
condition that he send his chauffeur back first thing in the morning with the money. On
turning on Breakfast TV news the next morning, Kim learns that there was a theft of a Bentley
limousine yesterday afternoon from the local car dealership. Now worried, she phones the
number that was on the back of the ID card. Getting through to the TV studio reception, she
learns that J Wessex is Jimmy Wessex, maintenance man who had his ID card stolen recently
from his wallet.
Despite waiting all day, no one comes to pay Kim the money! However, she has now seen her
beautiful MG on the driveway of her next door neighbour Lynne. On questioning her, Lynne
says she bought it at a great price from a man she met last night in the local wine bar.
Advise Kim on whether she can legally recover the car from Lynne.
Learning Outcomes
Required Reading
Additional Reading
Seminar Questions
1. What is duress? What are the main elements of the test for duress? What is the effect of
duress on a contract?
2. What is the difference between: a. duress to the person b. duress to goods and c. economic
duress?
4. What is ‘lawful act duress’? Give examples. Do you agree with the doctrine?
6. Jane runs a small business supplying laundry services to a number of exclusive spas and hotels
in Worcestershire. Jane and her staff clean the towels and sheets and she uses a specialist
delivery firm Quick as a Flash Ltd to collect and return the laundry items once cleaned.
Jane has recently won a large contract to supply laundry services to a chain of 8 luxury hotels
in Birmingham. Quick as a Flash hear of this and decide to demand an increase of 10% in its
contract prices with Jane. If she refuses, it threatens to immediately stop all further deliveries.
Jane is shocked by this and angry that the company is trying to take advantage of her success.
She initially rejects the demand. However, having quickly contacted a few alternative delivery
companies and found out that they would not have the spare capacity to replace all the work
done by Quick as a Flash, Jane reluctantly agrees to the price increase.
Two months later, a new delivery firm opens up in Worcester. They are eager for new
customers and have capacity to take on all of Jane’s delivery needs. Happy that she is now able
to do without Quick as a Flash, Jane serves one month’s notice to terminate her contract. She
also refuses to pay the 10% increase that was applied to the last two months’ invoices.
Quick as a Flash now threaten to sue Jane if she does not pay the two invoices in full.
Advise Jane.
Learning Outcomes
Required Reading
Pp 858-877
Additional Reading
Seminar Questions
Seminar 16:
1. What are the requirements for a case of undue influence to be made out?
2. What is the difference between actual and presumed undue influence? In what situations does
a presumption of undue influence arise?
5. If a presumption of undue influence is raised, what would a bank have to prove in order to be
able to enforce a guarantee contract?
6. John and Terry are civil partners. Terry runs a very successful catering business and caters for
weddings, birthdays and children’s parties across Herefordshire. They are joint owners of a
converted barn in Hereford.
Terry wants to invest in a new state of the art commercial kitchen costing £50,000. The H&W
Bank Ltd agrees in principle to lend the money to Terry. However, the bank insists that it takes
a charge over their family home to act as security for the loan.
Tracey, the new lending officer for the bank, visits John and Terry at their home. She asks each
of them to sign the loan documentation. (If signed, the effect of the documentation is that
each would give up their rights of ownership over their share of the barn in the event that the
loan is not repaid.) Terry signs without asking any questions. Tracey asks John if he wants her
to explain the paperwork to him. However, John says that Terry always deals with money
matters for them so if he was happy to sign then so was John.
Sadly, after an unfortunate incident with salmon that had accidently been used beyond its use
by date, Terry’s business fails as he gets a reputation as an unsafe caterer. Lacking revenue to
keep up the loan repayments, the bank has now written to both Terry and John saying that it
intends to repossess the barn and sell it at auction to pay off the loan.
Seminar 17:
7. In what circumstances will a court intervene to set aside a transaction on the basis of
‘exploitation of weakness’?
a. Tina is 87 years old. She has mental capacity but is not as sharp as she used to be. She
is thinking of ‘downsizing’ in the next year or so to a smaller property. Brian is a
property developer. He knows that Tina owns a large house he would like to buy it
cheap, then demolish it to build 2 small houses. Tina’s elderly neighbour dies recently.
Brian knows that Tina is very upset but chooses now to give her a ‘take it or leave it’ 24
hour offer to buy her house for 70% of its market value. Even though her solicitor
quickly emails her to advise against the offer, Tina is too upset to think clearly and
goes ahead with the sale. Advise Tina.
c. Matt is a poorly educated but wealthy farmer. He left school at 14 and never properly
learnt how to read. He wants to help his adult daughter set up a new IT firm. He agrees
to sign the bank’s loan documents which his daughter accurately reads out to him. The
loan puts his family home at risk if the repayments are not made on time. He gets
independent legal advice by phone though only from an inexperienced paralegal.
Sadly, his daughter’s new firm fails and she is unable to make the loan repayments.
The bank now want to re-possess his home as apparently allowed under the loan
documents. Advise Matt.
Learning Outcomes
Required Reading
Additional Reading
Seminar Questions
2. Can a party argue that a contract has been frustrated if the act allegedly causing the
frustration was the fault of that party?
4. In what circumstances can a party recover sums from the other party even though the contract
has been frustrated?
6. Harminder is a big fan of horse racing. He is very excited to learn that one of the Queen’s
horses, Corgi Rorgi, is due to race at the Pitchcroft Racecourse in Worcester in the July 16 th
2019 race. He is also a big fan of the monarchy.
Harminder books a large marquee to accommodate all his family and friends who he will invite
to join him at the races. He also books luxury catering for the afternoon. He pays a 10% deposit
with each company, the balance to be paid on assembly/delivery.
Unfortunately, due to rather freak weather conditions, the Pitchcroft racecourse is totally
flooded on 15th July and unusable for that weekend. Harminder phones the marquee company
and the catering company and says that both contracts are cancelled and he would like his
deposits back. Each company refuses.
Further, the catering company say that they will continue to prepare the food he has ordered
and it is up to him what he does with it. They say they will then invoice him for the balance
which he owes them.
Advise Harminder.
Learning Outcomes
Required Reading
Additional Reading
Seminar Questions
3. What is the effect of a term of a contract being categorised as: a. a condition b. a warranty c.
an innominate term? What is an ‘entire obligation’?
4. What options are open to the innocent party who suffers a repudiatory breach of contract?
6. Worcester Speedy Deliveries Ltd is looking to investigate the possibility of using drone
technology to deliver some of its urgent parcel deliveries in the future. It enters into a contract
with 21st Century Technologies Inc at a cost of $30,000 to send a consultant from their
California HQ to prepare a detailed technical and commercial report on the scope for such
drone use in the Worcester area.
However, after a boardroom coup at Worcester Speedy Deliveries Ltd, the new MD decides
that this is a stupid idea and immediately cancels the contract.
Deciding to ignore this development, 21st Century Technologies Inc sends its representative to
Worcester who duly prepares the originally requested report. The US company then delivers
the report (by drone, naturally) and also a copy of their invoice for $30,000.
Advise Worcester Speedy Deliveries Ltd whether it is liable to pay this invoice.
Learning Outcomes
Required Reading
Additional Reading
Seminar Questions
2. What is the difference between; a. the expectation measure of damages and b. the reliance
measure of damages?
3. What is the ‘consumer surplus’? To what extent does the law adequately compensate a victim
in respect of his or her non-financial losses?
5. Explain the purpose and scope of the claimant’s duty to mitigate his or her losses. Should a
claimant always be under such a duty?
6. Warwickshire Gold Dealers Ltd decides to contract with Group 7 Security (Worcester) Ltd to
provide 24 hour security at its storage facility in Warwick. In the agreement, it is specified that
G7 must provide inspections of the site by 2 guards and a trained dog every hour, 24 hours a
day. Also, they must carry out monitored CCTV surveillance of the site from their HQ in
Worcester.
Due to staff shortages and disobedient dogs, the company is actually only able to provide site
visits every two hours and only by 1 guard and her pet (untrained) dog! Also, while CCTV
surveillance is carried out on the site 24 hours, the CCTV is only monitored some of the time as
often the guards prefer to watch late night US TV shows.
Due to a tip off, Warwickshire Gold Dealers Ltd becomes aware of these service short falls.
However, to date, there have been no security breaches at the site.
Learning Outcomes
Required Reading
Additional Reading
Seminar Questions
1. What are the main differences between: a. compensatory damages and b. other specific
remedies?
2. How does a court decide whether a clause specifying payment of an agreed sum on breach of
contract or the occurrence of a certain event is either: a. a liquidated damages clause or b. a
penalty clause?
5. Should the law ever award punitive damages for breach of contract?
6. Miranda is a senior currencies dealer working for a major US investment bank in London. In
her contract of employment it states that if she is wrongfully dismissed, the company must pay
her a sum equal to one year’s gross salary, pension contributions and other benefits in kind.
The bank does wrongfully dismiss her but refuses to pay the set sum and argues that it is an
unenforceable penalty clause.
9. Feedback
Individual written feedback is given on each portfolio submission – you can expect to receive
this feedback within 20 working days from the submission date.
If you wish to have oral feedback from a tutor on an assignment, you are encouraged to book
an appointment by email.
Your feedback to us
At any point during the module students have the opportunity to feedback to their module
tutors and all modules undertake informal mid-module evaluations. At the end of a module
students are asked to complete the University of Worcester module evaluation form. This
feedback is anonymous and is intended to give the tutors insight into how to make
improvements in the future to that module. The forms are electronically scanned to calibrate
student responses and the statistical data, student comments and the module results are all
drawn upon by the module coordinator in writing their module report. These reports are read
by the Chair of the Institute of Humanities and Creative Arts (IHCA) Quality Committee, Course
Leaders and are also sent to students on the module. Module evaluation results and reports
are discussed at the IHCA Quality Committee, Course Management Committee and in Course /
Subject Annual Evaluation Reports.
10. Referencing
The latest guidance and policy relating to referencing at the University of Worcester is
available at http://library.worc.ac.uk/guides/study-skills/referencing.
Students studying this module are advised to use the OSCOLA style of referencing.