M1 Essentials of a Contract 2015 UNIT 21
Valid Contracts
March 2015
M1: analyse the impact of the requirements for a valid contract in a given situation
Required to answer 3 short essay style questions on a given scenario
Relevant case law must be mentioned.
Spelling & grammar essential.
Breach of Contract in the case of a private sale
‘Bob and Jamal’
FOR SALE £21,000
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.
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?
b) How might your answer be different if all communication was by email to an internet advertisement?
c) Provide an analysis of the impact of the requirements for a valid contract in the situation above.
One factor that indicates that the offer has not been accepted is the existence of a counter offer.
The principle of acceptance is that the offer must be accepted on the same terms it was made.
Mr Wrench offered to sell some property to Mr
Hyde for £1,000 on the 6 June. Two days later Mr
Hyde made a new offer to buy the property at a lower price for £950. This was a counter-offer and was rejected by Mr Wrench. Mr Hyde then said he would accept the original price of £1,000, but Mr Wrench refused to sell.
Explain what is mean by a counter-offer
Do you think Mr Hyde’s original
March 2015
M1: analyse the impact of the requirements for a valid contract in a given situation
Required to answer 3 short essay style questions on a given scenario
Relevant case law must be mentioned.
Spelling & grammar essential.
Breach of Contract in the case of a private sale
‘Bob and Jamal’
FOR SALE £21,000
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.
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?
b) How might your answer be different if all communication was by email to an internet advertisement?
c) Provide an analysis of the impact of the requirements for a valid contract in the situation above.
One factor that indicates that the offer has not been accepted is the existence of a counter offer.
The principle of acceptance is that the offer must be accepted on the same terms it was made.
Mr Wrench offered to sell some property to Mr
Hyde for £1,000 on the 6 June. Two days later Mr
Hyde made a new offer to buy the property at a lower price for £950. This was a counter-offer and was rejected by Mr Wrench. Mr Hyde then said he would accept the original price of £1,000, but Mr Wrench refused to sell.
Explain what is mean by a counter-offer
Do you think Mr Hyde’s original