Contract Law Exam 2010

Topics: Contract, 1969, Contract law Pages: 22 (2982 words) Published: September 30, 2014
1

Graduate Diploma in Law

Contract Law
Examination Paper
DATE:

16 June 2010

TIME:

AM

TIME ALLOWED:

THREE HOURS

INSTRUCTIONS TO CANDIDATES
Where questions are sub-divided, candidates should not expect the sub-divisions necessarily to be of equal weight.
Materials provided: GDL Statutory Extracts (which MUST be returned UNMARKED at the end of the examination).
You must answer THREE questions out of SIX

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QUESTION 1
Bernie ran a small but successful shop, Bernie’s Veg, selling locally grown fruit and vegetables. He decided to expand his business to include deliveries of an “organic box” scheme to customers in the local area. He needed to buy a van to make these deliveries, and wanted some leaflets printed to advertise “Veg in a Van,” his new service.

On Wednesday 28 April, at 11.00 am, Bernie sent a text to his uncle Ron, who needed to upgrade his own business van, “Need to buy a van. Have you got one for a few thousand?” An exchange of emails followed as set out in Documents A and B.

On Friday 14 May, Ron sent a letter to Bernie, set out as Document C. The letter arrived on Monday 17 May.
Also on 14 May, Bernie read in the Blankford Gazette about a local van auction at Frank’s Auction House the next day (Document D).
On the morning of the auction, Saturday 15 May, Bernie left a message on Ron’s business telephone voicemail, stating that he no longer wanted the van. Ron did not pick this up until 9.00 am on Monday 17 May and immediately sold the van to Max.

Bernie attended the auction, and he eventually made the highest bid for the VDL Supercarry, at £2,500. The auctioneer refused to accept Bernie’s bid as he knew that the owner had hoped to achieve a significantly higher price. Bernie was furious.

On his way to Frank’s Auction House, Bernie had popped into “Speedyprint” to enquire about the cost of their producing some leaflets to advertise his new enterprise.
He was surprised at Speedyprint’s fee of £400 + VAT for 5000 small leaflets and told the sales assistant that he would have to look elsewhere unless he could negotiate a discount. The sales assistant, Stefano, was doing some work experience at Speedyprint during his gap year. Eager to impress his manager, Luca, he agreed a reduced fee of £200 + VAT to secure the order. When Luca returned, he was annoyed – he had already told Stefano not to change the prices. Luca telephoned Bernie to tell him that the standard rate still applied. Ron’s letter (Document C) arrived in the 10.00 am post delivery on Monday 17 May. When he read Ron’s letter, Bernie was relieved that he could buy a cheap van after all. When he phoned Ron, Bernie was angry to hear that Ron had sold the van to Max within the last hour - and before the 21 May deadline. Advise Bernie, explaining his legal position.

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Graduate Diploma in Law
Document A
Email - Wednesday 28 April, 13:02
From: Ron
To: Bernie

Thanks for your text. I have a nice 2-year old white Vauxford Transano, one previous owner, for £5,000. Would you be interested?

Document B

Email - Thursday 13 May, 17:00
From: Bernie
To: Ron
I’ll take the van off your hands for £4,500.

Document C

Letter from Ron to Bernie, Friday 14 May
Dear Bernie,
You can have the van for £4,500. Would you be able to pay cash? Max is interested in buying the van so can you tell me by Friday 21? Regards, Ron

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© The College of Law 2010

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Document D

Extract from Blankford Gazette, Friday 14 May
Frank’s Auction House
Auto Auction
Saturday 15 May, Noon.
Lot 22
VDL...
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