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LAW1108/LAW2208 Contract Law Assessment 2
April 2024
Assessment Instructions
Type your coursework in Times New Roman 12-point font as a Word file. Pdf files or any other file type are not acceptable.
The word limit is 3,000 words. (Excluding footnotes and bibliography, so your work total should be between 2900 and 3000 words. Word count must be stated. Coursework which fails to state the word count or states the word count incorrectly will be penalised by the deduction of 2%. Text above 10% of the word count will not be graded.
You must answer both questions and each answer should be between 1,450 and 1,500 words Do not repeat or reword the question in your answer.
A full Bibliography must be included at the end of each question, in which all cases, statutes, and all source material, including websites, must be fully and correctly cited. Statute, cases and quotations must be attributed and included in footnotes, which should contain correct citations only and not text. Your coursework must be referenced following the OSCOLA referencing style. Non OSCOLA compliant referencing will not attract marks.
Be aware of, and comply with, the University Regulations on Academic Misconduct.
You must retain a copy of your work.
Q1
Alan is a motorcycle enthusiast and dealer.
He has recently bought a 1961 BSA Rocket Gold Star for £25K. However, some weeks previously, he had entered into an online contest run by Ohmiword, where entrants purchased a ticket for £5K, the prizes being chosen at random from a house, a Porsche, a Mercedes, a Brough Superior and a Rocket Gold Star, and he receives an email telling him he has won the Gold Star. On reading the details, he finds that the bike is the exact same one he has bought. Alan is very annoyed that he has, essentially, paid £30K for the bike.
Using case law, advise Alan on any action and remedy he may have under the law of common law Mistake in Contract only.
Alan then buys from Amit a Suzuki RG500 bike which Amit says was once raced by Barry Sheere, a very famous and popular bike racer- it is a high price, but Alan thinks it worthwhile because he knows that Sheere has a considerable following and the bike is therefore very much a collector’s item. Unfortunately, Sheere’s son comes to see the bike, and he gives Alan proof that Barry Sheere never actually rode the bike in question, but a less well known team member did- a fact which was not widely known outside those immediately involved with Sheere. This fact immediately takes 75% of the value off the bike. Alan contacts Amit, but finds that Amit had no idea that it was not Sheere who had ridden the bike.
Using case law, advise Alan on any action and remedy he may have under the law of common law Mistake in Contract only.
Alan has in his stock a 1973 BMW R90S. A girl calling herself Linda Wurst comes to his premises and says she really wants the bike as a last minute birthday present for her father, famous ex-footballer George Wurst, but needs to get credit as she only has the deposit with her in cash.
Alan wants to make sure of her identity, so looks up the address she gives (she says she lives with her father), and sees her driving licence, both are the correct address for George Wurst, so Alan contacts a finance company to get Linda credit for the sale, using the driving licence as proof of identity.
Unfortunately, the driving licence is a fake, Linda has been lying about her identity, and, after selling the bike to a third party, Rashid, she disappears.
Using case law, advise Alan on any action and remedy he may have under the law of common law Mistake in Contract only.
Q2.
Nazeem has inherited £230K from his Aunt’s will, so has decided to buy his first house, and his friend, Martin, mentions that he is selling his terrace home in Brixton, and would do Nazeem ‘a good price’ for a quick sale, as Martin was going to be working abroad for some years.
Martin tells Nazeem that the house has actually been valued by two local estate agents, one valuation being £250K and the other being £263K, but that as Nazeem was a friend, Martin would only ask £230K. He also says that the house is in ‘great condition’ and that he has ‘done a lot of work improving it’, and tells Nazeem that he can look at the valuation reports and get any checks that are needed.
Nazeem thinks that Martin can be relied upon as a friend, so does not ask to see the estate agent valuations, and, being short on cash, does not get an independent valuation, but goes ahead and buys the house outright, using his inheritance money.
However, only a couple of weeks after completing the purchase, Nazeem finds out that the houses around him are only being sold for around £200K, and that Martin had not actually had any valuations done. Shortly after that, and while Nazeem is at work, most of the top floor collapses due to a supporting wall collapsing- although there were very significant cracks in the wall, Martin had wallpapered over them just before the sale. The repairs needed are costed at £200K, mean that the house is now only worth £50K, and is uninhabitable until all the building work has been done, forcing Nazeem to rent a flat. Martin is working in Northampton.
Using case law and statute, advise Nazeem as to any action and remedies he may have in Misrepresentation only.
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