Impact of the Requirements for a Valid Contract
M1: ANALYSE THE IMPACT OF THE REQUIREMENTS FOR A VALID CONTRACT IN THE GIVEN SITUATION
Breach of contract in the case of a private sale
In the Westshire Times on 2 September there was an advertisement to sell a 1998 Porsche 911 for £21,000. The advertiser was Jamal, giving a contact address.
On 7 September Bob wrote to Jamal stating that he was interested in buying the car for £20,000.
On 9 September Jamal wrote back to Bob stating that he could not sell the car for less than £20,500.
On 10 September Jamal wrote again to Bob stating that he would now sell the car for £20,000, and asking Bob to bring the money and collect the car.
On 12 September, the letters sent on 9 and 10 September arrived together at Bob’s house.
Bob now refuses to collect and pay for the car.
ANALYSIS
a) Does Bob have to pay for the car or risk legal action for being in breach of contract if he continues to refuse to pay?
Know the correct answer. Analyse the postal rule and mention the relevant case law eg. Household fire & Carriage Accident Insurance vs Grant (1879), Hyde vs Wrench 1840 etc.
b) How might your answer be different if all communication was by email to an internet advertisement?
Know the correct answer. Analyse and mention the relevant case law eg Brinkibon v Stahag Stahl (1993). Mention E Commerce Regulations – cooling off period could be relevant.
c) Provide an analysis of the impact of the requirements for a valid contract in the situation above.
Look at the 4 elements of a valid contract (P1/P2) eg Offer, acceptance, consideration and capacity. Analyse the impact of these and how they could potentially change the outcome/decision. Mention any relevant case law.
Breach of contract in the case of a private sale
In the Westshire Times on 2 September there was an advertisement to sell a 1998 Porsche 911 for £21,000. The advertiser was Jamal, giving a contact address.
On 7 September Bob wrote to Jamal stating that he was interested in buying the car for £20,000.
On 9 September Jamal wrote back to Bob stating that he could not sell the car for less than £20,500.
On 10 September Jamal wrote again to Bob stating that he would now sell the car for £20,000, and asking Bob to bring the money and collect the car.
On 12 September, the letters sent on 9 and 10 September arrived together at Bob’s house.
Bob now refuses to collect and pay for the car.
ANALYSIS
a) Does Bob have to pay for the car or risk legal action for being in breach of contract if he continues to refuse to pay?
Know the correct answer. Analyse the postal rule and mention the relevant case law eg. Household fire & Carriage Accident Insurance vs Grant (1879), Hyde vs Wrench 1840 etc.
b) How might your answer be different if all communication was by email to an internet advertisement?
Know the correct answer. Analyse and mention the relevant case law eg Brinkibon v Stahag Stahl (1993). Mention E Commerce Regulations – cooling off period could be relevant.
c) Provide an analysis of the impact of the requirements for a valid contract in the situation above.
Look at the 4 elements of a valid contract (P1/P2) eg Offer, acceptance, consideration and capacity. Analyse the impact of these and how they could potentially change the outcome/decision. Mention any relevant case law.