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AC 1.1 Distinguish between an offer and an invitation to treat
LAW403: Contract Law Assignment
Module Name
LAW401: Contract Law
Assignment Name
LAW403: Contract Law Assignment
Level
Level 4 Extended Diploma in Law
Credits
30
Plagiarism and Collusion
In submitting the assignment Learner’s must complete a statement of authenticity confirming that the work submitted for all tasks is their own. The statement should also include the word count.
Plagiarism and collusion are treated very seriously. Plagiarism involves presenting work, excerpts, ideas or passages of another author without appropriate referencing and attribution.
Collusion occurs when two or more learners submit work which is so alike in ideas, content, wording and/or structure that the similarity goes beyond what might have been mere coincidence.
Referencing
A professional approach to work is expected from all learners. Learners must therefore identify and acknowledge ALL sources/methodologies/applications used.
The learner must use an appropriate referencing system to achieve this. Marks are not awarded for the use of English; however, the learner must express ideas clearly and ensure that appropriate terminology is used to convey accuracy in meaning.
Please use Harvard Style of Referencing throughout your work.
Appendices
You may include appendices to support your work, however appendices must only contain additional supporting information, and must be clearly referenced in your assignment.
You may also include tables, graphs, diagrams, Gantt charts and flowcharts that support the main report should be incorporated into the back of the assignment report that is submitted
Any published secondary information such as annual reports and company literature, should be referenced in the main text of the assignment, in accordance with Harvard Style Referencing, and referenced at the end of the assignment.
Confidentiality
Where a Learner is using organisational information that deals with sensitive material or issues, they must seek the advice and permission from that organisation about its inclusion.
Where confidentiality is an issue, Learners are advised to anonymise their assignment report so that it cannot be attributed to that particular organisation.
Word Count Policy
Learners must comply with the required word count, within a margin of +10%. These rules exclude the index, headings, tables, images, footnotes, appendices and information contained within references and bibliographies.
When an assessment task requires learners to produce presentation slides with supporting notes, the word count applies to the supporting notes only.
Submission of Assignments
-All work to be submitted on the due on the last day of the month.
-All work must be submitted in a single electronic document (.doc/.docx file).
-Add the Assignment Cover Form at the beginning of the assignment and
-Add the Assignment Rubric Form at the last page of the assignment document.
-File name Format “Full Name-Assignment Name.docx ”
Marking and Grades
A standard marking rubric for all assignments, and you can find the details at the end of this document.
Unless stated elsewhere, Learners must answer all questions in this document
Assignment Question
Assignment - Total word count - 3,000 words
You are a trainee solicitor in BL LLP. Your supervisor has asked you to advise on a number of contractual matters relating to one of the firm’s clients, Mr Wilson.
1) Sale of paintings
Last year Mr Wilson inherited two paintings from his uncle. He does not particularly like the paintings and on Monday places the following advert in a local newspaper:
“For sale – two paintings, circa 1950’s. Price negotiable
The advert contains a photograph of each painting and Mr Wilson’s email address.
Mavis sees the advert on Tuesday. She thinks that the paintings are by the famous artist Dale Salvadori and immediately sends an email to Wilson saying that she will pay £200 for both of them.
Wilson emails back on Wednesday morning saying that he will accept £200 per painting and that Mavis should communicate her decision to him no later than Friday morning.
On Wednesday evening, Wilson receives an email from Polly. It states that Polly will pay £500 for both paintings.
Wilson responds to Polly’s email straightaway, saying: “It is a deal. They are yours”
On Wednesday evening he also sends an email to Mavis informing her that the paintings are no longer for sale. Mavis’ email account is hacked on Wednesday morning and she cannot send or receive any emails. She sends a letter to Wilson on Thursday morning saying that she is happy to pay £400 for both paintings.
The letter is received by Wilson on Saturday morning. By this time Wilson has discovered that the paintings are by Dale Salvadori and refuses to sell them.
Both Mavis and Polly each claim that they have a valid contract with Wilson for the sale of the paintings
Task 1 - 500 words
You need to produce written advice on each issue for your supervisor to consider in the cases of a) Mavis v Wilson and b) Polly v Wilson, using the information provided. You must ensure that you:
distinguish between an offer and an invitation to treat AC 1.1
identify and explain the legal rules applicable to the acceptance of an offer AC 1.2
2. Green Cottage and related matters
a) Wilson wants to open a boutique hotel. He buys Green Cottage for £300,000 and on 1 February hires a construction company Build It Perfect (BIP), to carry out the refurbishment.
Under the agreement, BIP needs to complete the work by 1 May for a fixed price of £50,000.
On 1 May BIP informs Wilson that they are experiencing financial difficulties and that unless he pays them an extra £20,000 they will not complete the work by the agreed date. Wilson is furious. If the work is not completed by 1July he will need to postpone the opening of the hotel and cancel the bookings. Therefore, he reluctantly agrees to pay BIP the additional £20,000.
BIP completes the work by 1 July.
Task 2 - 500 words
You must continue to provide written advice in the case of Wilson v BIP for your supervisor to consider.
In the written advice for Wilson v BIP, using the information provided you must ensure you:
Assess the requirements for a valid consideration AC 1.3
Analyse the development of the doctrine of duress AC 3.3
Your supervisor is pleased with your work to date and has set up a meeting with you to discuss certain points of law. You know that you must be prepared for this meeting as the supervisor will have high expectations of the discussion.
For a Merit grade make notes for the meeting which:
Critique the significance of practical benefit as consideration AC 1M1
For a Distinction grade your notes must also:
Assess the limitations of Williams v Roffey Bros (1991) in relation to a promise to accept less. AC 1D1
b) Wilson orders £30,000 for some new made to measure furniture for the boutique hotel from Dakia. Dakia is to deliver the furniture on 1 July. Dakia delivers the furniture on schedule but none of it is of the agreed dimensions. Wilson sends it back and wants Dakia to refund him the £30,000 he paid for it. Dakia refuses to refund him, bringing to his attention the following clause contained on the last page of their contract, which was duly signed by Wilson.
Clause 47 “No refund under any circumstances”.
Wilson now finds a local company that can deliver furniture in time for the opening, but it only has sufficient furniture in stock to furnish three of the six bedrooms.
Wilson decides to go ahead with the opening despite the fact that only three of the rooms can be hired out.
Task 3 - 1000 words
Your supervisor now wishes you to draft written advice to Wilson v Dakia for him to consider, In the communication you need to:
Explain the difference between terms and representations AC 2.1
Identify the sources of contractual terms AC 2.2
Distinguish between conditions, warranties and innominate terms AC 2.3
Examine the difference between breach of conditions, warranties and innominate terms AC 4.2
Distinguish between liquidated and unliquidated damages AC 5.1
Assess the aim of damages in Contract Law AC 5.2
Compare and contrast the different measures used for assessing damages AC 5.3
In order to achieve a Distinction grade you must in addition:
Analyse the Court’s approach to interpretation and validity of exemption clauses
AC 2D1
Assess the amount of damages that can be claimed for a specific breach of contract
AC 5D1
c) A day before the opening, he receives a booking request from Robert Milford for a two-night, all-inclusive stay.
When Robert arrives at the hotel, Wilson is convinced that he is the famous football player Ronald Messino, using an alias. At reception, Wilson has displayed a few antique items for sale. On checking out, Robert selects a vase from the display and asks whether Wilson is willing to take a cheque for it. Wilson says that although usually he does not take cheques, as he is a famous football star, he will accept a cheque. To this, Robert smiles and gives Wilson a cheque for £500. Wilson accepts the cheque and gives the vase to Robert.
When he goes to the bank to cash in the cheque, he is informed that the cheque is a forgery. Wilson manages to trace the vase to Kam who had paid Robert £700 for it and refuses to give it to Wilson.
Task 4 - 500 words
In the written advice to Wilson v Kam, using the information provided you must:
Identify the elements of actionable representation AC 3.1
Differentiate between fraudulent, negligent and innocent misrepresentation AC 3.2
In order to achieve a Merit grade you must in addition:
Examine the remedies available for fraudulent, negligent and innocent misrepresentation AC 3M1
Contrast the effects of misrepresentation and mistake on a contract AC 3M2
d) Two days before the hotel opens, Sandra who was contracted by Wilson to sing at the opening night, phones to say that she will not be performing because she has broken her leg and cannot travel. Wilson demands that Sandra returns the £2000 he paid to her for the performance.
Task 5 - 500 words
In the written advice for Wilson v Sandra you must ensure you:
Explain the different ways in which a contract can come to an end AC 4.1
Examine the doctrine of frustration AC 4.
Guidelines for assessors
The assignments submitted by learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. To achieve a merit or distinction grade, the learners must demonstrate that they have achieved all the criteria set for these grades. Where work for the pass standard is marginal, assessors can take account of any extension work completed by the learners. Distinguish between an offer and an invitation to treat. The suggested evidence listed below is how learners can demonstrate that they have met the required standards.
Task No.
Learning Outcomes and Assessment criteria
Suggested evidence
All
All
The evidence must be appropriately presented for the target audiences provided in the scenarios.
1a
Mavis v Wilson
LO1 1.1; 1.2
Learners must ensure that they take account of the command verbs stated in the AC.
Learners should produce detailed notes that differentiate between an offer and an invitation to treat. They should identify and apply relevant case law including the general rule in relation to adverts – Partridge v Crittenden. Notes should consider the issue of whether Mavis has made an offer to Wilson and differentiate between acceptance and counter -offer and the effect of a counter-offer on the original offer discussing the application of the rule in Hyde v Wrench.
Notes should also detail the acceptance of an offer including when an acceptance by post is valid and criticism of the postal rule and its limitations.
They will also cover revocation of an offer and the circumstances when an offer is validly revoked.
Notes should be well structured, easy to follow and apply relevant case law.
1b
Polly v Wilson
LO 1 AC 1.2
Learners should produce detailed, structured notes identifying what constitutes an offer and explaining the rule in Storer v Manchester City Council; They should explain what constitutes acceptance by instantaneous modes of communication discussing the application of Entores.
Notes should consider whether emails are an instantaneous form of communication as discussed in Thomas v BPE Solicitors.
Notes should also include discussion on whether there is an attempt to revoke the offer.
2a
Wilson v BIP
LO1 AC1.3;
LO 3 AC3.3;
Learners must ensure that they take account of the command verbs stated in the AC.
LO1 1M1 LO1 1D1
Learners should produce detailed written advice that assesses the validity of the promise by Wilson to pay more. In order to do this they will need to identify who should provide consideration, what the consideration is and whether it is valid consideration.
Learners will need to show some consideration of the general rule on a pre-existing contractual duty owed to the promisor as consideration and apply the relevant case law in. Stilk v Myrick and Hartley v Ponsonby.
Merit learners will be able to present a detailed critique of practical benefit as consideration which discusses the application of Williams v RB and identifies the limitations of it.
The written advice should include an analysis of the doctrine of duress and define economic duress which is relevant here, its elements and its effect on the contract.
2b
Wilson
LO 2 2.1, 2.2,
Written advice should give a clear explanation of terms and
v
2.3; LO2 2D1
representations, differentiating between them and between
Dakia
LO4 4.2;
conditions, warranties and innominate terms using examples
relating to the given scenario. Learners will need to identify the
LO5 5.1, 5.2,5.3;
contractual terms for the scenario and consider the source of
those terms. They should determine from this the contract that
LO5 5D1
exists for sale of goods and identify the terms of the contract
– express terms as well as terms implied by the Sale of Goods
Act 1979. They should identify the type of breach that may
have occurred considering the difference between a breach of
condition, warranty or an innominate term. Notes should detail
the remedies that may be available (repudiation of contract
and damages) and consider how damages are assessed in
the absence of a valid liquidated damages clause. This will
include the identification of the different types of measures
used for assessing damages – expectation; reliance and
restitution. Each of these should be explained.
Merit answers will consider the requirements for the validity of exemption clauses as interpreted by the courts with reference to
- Incorporation
- Common law interpretation
- Statutory validity – Unfair Contract Terms Act 1977
Distinction students will apply the relevant rules to assess the amount of damages that Wilson may claim. Once the loss (the amount of damages) is identified, it should be considered whether all of it is recoverable i.e. was it caused by the breach; was it too remote and whether Wilson took any steps to mitigate the loss.
2c
Wilson v Kam
LO 3 3.1, 3.2,
3.3; LO3 3M1;
3M2
Learners should produce notes that consider whether Wilson will be able to claim the vase from Kam if the contract between Wilson and Robert is void on the grounds of mistake. To establish whether there is operative mistake as to identity, the difference between contract entered in a face to face environment and contracts entered into through some form of correspondence should be outlined, and the general presumption relevant to each explained and applied.
If the contract is not void on the grounds of mistake, it should be considered whether it can be avoided on the grounds of misrepresentation. The difference between void and voidable contract should be explained.
The different types of misrepresentation should be identified and defined and the focus should be on fraudulent misrepresentation.
Relevant case examples should be used and applied throughout.
Merit learners will examine the remedies for fraudulent misrepresentation - rescission and damages and the bars to rescission, in particular third party rights should be discussed and applied. They should also compare the effects of misrepresentation and mistakes on a contract.
2d
Wilson v Sandra
LO 4.1, 4.3
Written advice should detail the different ways in which a contract can come to an end, and, in particular how and when a contract can come to an end because of frustration using relevant case examples.
Frustration should be defined and learners must identify when a contract can be frustrated; what the effect of this is on the parties obligations under the Law Reform (Frustrated Contracts) Act 1943.
Distinguished
Excellent
Good
Proficient
Basic
Marginal
Unacceptable
Criteria
80+
70
60
50
40
30
0
Content
Extensive
Comprehensiv
Adequate
Describes
Describes some
Largely
Inadequate
(alignment with
evaluation and
e critical
evaluation and
main ideas
of the main ideas
incomplete
information or
assessment
synthesis of
evaluation and
synthesis of
with
but omits some
description of
containing
criteria)
ideas; includes
synthesis of
key ideas
evidence of
concepts; limited
main issues;
information not
substantial
ideas; includes
beyond basic
evaluation;
evidence of
misses key
relevant to the
original thinking
coherent
descriptions;
includes
evaluation;
concepts; no
topic
original
includes
some original
confused original
original
thinking
original
thinking
thinking
thinking
thinking
Application of Theory and Literature
In-depth, detailed and relevant application of theory; expertly integrates literature to support ideas and concept
Clear and relevant application of theory; fully integrates literature to support ideas and concepts
Appropriate application of theory; integrates literature to support ideas and concepts
Adequate application of theory; uses literature to support ideas and concepts
Limited application of theory; refers to literature but may not use it consistently
Confused application of theory; does not use literature for support
Little or no evidence of application of theory and relevant literature
Knowledge and
Extensive depth
Comprehensiv
Sound
Basic
Limited and
Confused or
Little or no
Understanding
of
e knowledge
understanding
Knowledge
superficial
inadequate
evidence of
understanding
and depth of
of
and
knowledge and
knowledge
knowledge or
and exploration
understanding
principles and
understandin
understanding of
and
understanding
beyond key
key principles
concepts
g
key concepts and
understanding
of key concepts
principles and
and concepts
of key
principles
of key
and principles
concepts
concepts and
concepts and
principles
principles
Presentation
Logical,
Logical,
Logical
Orderly
Somewhat weak
Confused
Illogical
and Writing
coherent and
coherent
structure to
presentation;
presentation;
presentation;
presentation
Skills
polished
presentation
presentation;
minor errors
errors in
errors in
lacking
presentation
demonstrating
makes few
in mechanics
mechanics and
mechanics
cohesion;
exceeding
mastery; free
errors in
and syntax
syntax may
and syntax
contains
expectations at
from errors in
mechanics and
interfere with
often interfere
significant errors
this level; free
mechanics
syntax which
meaning
with meaning
that interfere
from errors in
and syntax
do not prohibit
with meaning
mechanics and
meaning
syntax
Referencing
Advanced use
Mastery of
Appropriate
Adequate
Limited use of in-
Inadequate
Little or no
of in- text
in-text citation
use of in-text
use of in- text
text citation and
use of citation
evidence of
citation and
and
citation and
citation and
referencing
and
appropriate
references
referencing
referencing
referencing
referencing
referencing or
use of sources
Directions:
For each of the criteria listed in the first column, circle one box in the corresponding column to the right which best reflects the student’s work on this particular assessment activity (e.g., project, presentation, essay).
Provide specific feedback to a student about each of the criteria scores he/she earned by writing comments and suggestions for improvement in the last row titled “Instructor’s comments.”
To arrive at a mark, total the boxes and divide by 5 to arrive at the final mark.
Example:
Distinguished
Excellent
Good
Proficient
Basic
Marginal
Unacceptable
Range
80-100
70-79
60-69
50-59
40-49
35-39
0-34
Criteria
Score
Content
50
Application of Theory and Literature
40
Knowledge and Understanding
50
Presentation/Writing Skills
40
Referencing
40
Total Score
220/5 = 44, Basic
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