Total Temper (TT) is a popular musician
INSTRUCTIONS TO CANDIDATES
Answer TWO questions only. There are SIX questions on the paper.
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- Total Temper (TT) is a popular musician. He wanted to use the Greenford Convention Centre (the ‘GCC’) for the opening night of the tour to promote his new album – “Keep Calm”. TT spoke to David, the manager of the GCC, about the event. David told TT that, ‘the GCC is the best venue in Greenford, I reckon you can get up to 10,000 people in there.’
David offered TT the chance to visit the GCC, but TT declined. A week later TT signed the contract to hire the GCC.
The police have now told TT’s agent that only 4,000 people may be admitted to the GCC on the grounds of safety. The police have,on previous occasions, reminded David that, where an audience over 3,000 is expected, he should use the Greenford Auditorium instead. TT wants to cancel the contract with the GCC and claim back money he has paid out for promotion and advertising.
Advise TT
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- ‘It has long been held that for an agreement to be complete a clear offer is needed matched by full and final acceptance’.
Discuss this statement
- ‘Ultimately a contract is the sum of its parts, that is the terms and conditions which outline the obligations of the parties’.
Discuss how terms are validly incorporated into a contract.
- Peter is a businessman and his business is in financial difficulty. BIG Bank agrees an overdraft with him on condition that he provides his home as security. Peter jointly owns his home with his partner, Sam. Peter explains to Sam that the overdraft is needed for just a couple of weeks and is limited to £5,000. In fact, the overdraft is for an indefinite period and presently stands at over £200,000.
Peter says that Sam needs to sign some papers which have been sent to his solicitor’s offices. They attend at Peter’s solicitor’s offices together where Peter’s solicitor mumbles something about the documents to Sam. Sam does not understand the solicitor but signs the documents without further discussion. The Solicitor sends a certificate to BIG bank saying that Sam has been given full and informed independent legal advice about the transaction.
Some weeks later, Peter’s business collapses and the bank call in the overdraft and wish to sell the home. Advise Sam and the BIG Bank.
- ‘The Contracts (Rights of Third Parties) Act 1999 was enacted to deal with the obvious injustices that obvious beneficiaries to a contract cannot sue on the terms’.
Discuss this statement.
- ‘Consent is a central tenet of contractual agreement and issues that vitiate that consent have found specific relief in the courts’.
Discuss how consent to agreement is vitiated by the duress of one party on another.