Instructions

To achieve a PASS Grade, you should be able to do the following:
SCENARIO
You are a solicitor working for a firm which provides a series of seminars for clients wanting to
set up a business for the first time. Your task is to produce a written report, to be given to each
client attending the seminar, setting out in “user friendly” style the principles of law relating to
the formation of a valid contract and their application in business situations.
You have decided to produce the information as a set of questions and answers with an
analysis of several case studies to illustrate the legal principles.

  1. What is a contract?
  2. What are the essential elements for the contract to be legally binding? Briefly describe
    each of the elements.
  3. Explain the importance of the following essential elements:
    (a) offer and acceptance
    (b) an intention to create legal relations
    (c) consideration and privity of contract
    (d) legal capacity
  4. Explain the significant differences between the following types of contracts and discuss
    the impact on the parties of those differences:
    (i) Standard form contracts,
    (ii) Contracts made face to face,
    (iii) Contracts in writing, and
    (iv) Contracts for distance selling?
  5. Case Studies –

Is there a valid contract in the following situations? Give reasons for your answers.

  1. Shamsa wants to buy Bill’s boat. She telephones him and asks Bill how much he would be
    willing to sell his boat for. Bill tells her, ‘Not less than AED85000’. Shamsa says, ‘I accept
    your price, I will bring you the money this afternoon.’
    Advise Bill whether he is legally obliged to proceed with the sale.
  2. On Sunday, New Dealers Ltd posted a letter to Mr Jones offering to sell him 200 tons of
    beans at AED100 per ton for delivery in 1 month. The offer was to remain open for 7 days.
    On Monday, Mr Jones posted a letter to New Dealers Ltd saying he would like to buy
    the beans but with delivery in 2 months’ time. Mr Jones did not receive a reply so on
    Wednesday he posted a second letter saying he accepted the offer made on Sunday. Later
    on Wednesday, he received a letter from New Dealers Ltd saying that the beans
    had been sold to another customer.
    Advise Mr Jones whether he has a contract with New Dealers Ltd and why.
  3. On Tuesday at 11am, Alex, a dealer in vintage cars, faxes a letter to Mohammed offering to
    sell him a Porsche car for AED300,000. Mohammed receives the fax at 11.15am and faxes
    an acceptance at 12.45pm. He knows that Alex’s office is closed between 12pm and 2pm.
    When Alex returns to the office at 2pm she does not check the fax machine and when
    Mariam offers to buy the same Porsche car at 3pm, Alex accepts the offer. At 3.30pm
    Mohammed is walking in the street and meets Alex’s office assistant who tells him the car
    has been sold to Mariam. Mohammed immediately sends another fax to Alex demanding
    the Porsche car be sold to him. Alex reads this fax and the acceptance fax at 4pm.
    Advise Mohammed whether he has a contract with Alex and why.
  4. While Fatima is away on holiday her neighbor, Bilal, trims her hedge at the front of her
    house. When Fatima returns she is so pleased that she promises to give Bilal AED100.
    That happened two weeks ago and Bilal has not yet received the money. Is there a contract
    between Fatima and Bilal and why?
  5. Mary buys a television set as a gift for her mother from Electronic Supplies Ltd. The
    television
    set stops working ten days later. Who can sue Electronic Supplies Ltd for breach of contract
    and why?
    What has been the impact of the Contracts (Rights of Third Parties) Act 1999 in situations
    like
    this?
  6. Barbara borrows money from One Bank to set up her own small business, selling music
    books and instruments which pays for her own music lessons.
    After a few months Barbara’s main supplier finds out she is only 17 and refuses to trade
    further with her. This means Barbara doesn’t have enough business to pay for her
    music lessons.
    She is also behind with payment of her mobile telephone account.
    Advise Barbara about the enforceability of each of the four contracts she has entered into:
    i. For the bank loan
    ii. With the supplier of the music books and instruments
    iii. For her music lessons
    iv. For her mobile phone.

M1, M2 to Achieve a Merit Grade, you should be able to:
M1 Show that you have used several sources of information to explain and illustrate the
essential elements of a contract and their significance and demonstrate an effective
approach to study and submit the report on the specified date
M2 Use decisions in legal cases to support the application of legal principles to business
problems and give reasons to justify your conclusions
. D1 to Achieve a Distinction Grade, you should be able to:
Evaluate how well the parties are protected by the application of contract law when dealing
with business problems

TASK 2: Outcomes: 1.3, 2.2, and 2.3
INDIVIDUAL REPORT: To be submitted: 15 March 2017
To achieve a PASS Grade, you should be able to do the following:

SCENARIO
You are a solicitor working for a firm which provides a series of seminars for clients wanting to
set up a business for the first time. Your task is to produce a written report, to be given to each

client attending the seminar, setting out in “user friendly” style the principles of law relating to
the ‘Terms’ in a contract and ‘Exclusion of Liability’ clauses by answering the following
questions:
QUESTIONS:
!A. (i) What is the meaning of the following contractual terms?
(ii) What remedy is available if these terms are broken?
a) Condition
b) Warranty
c) Innominate term

1B. (i) What is the meaning of the following contractual terms?
(ii) What is the result if the terms are put into practice?

d) Force Majeure
e) Price Variation clauses
f) Retention of title clauses

  1. Case Study –Exclusion of Liability Clauses
    Tom likes to travel away from home for a weekend fishing with his friends. He arrives at
    the Holiday Hotel, owned by Relaxation Resources Ltd. He has stayed there several
    times before. His room is not ready so he leaves his bag with the receptionist and is
    given a ticket of receipt which he puts in his pocket without reading it. The back of the
    ticket states:
    ‘All items left at reception at owner’s risk’. [Notice 1]
    When Tom returns to the hotel he is informed that his bag has gone missing but that it
    will be returned to him as soon as it is found.
    Tom goes to his bedroom and sees a large notice which states:
    ‘Relaxation Resources Ltd accepts no responsibility for loss of property or injury to
    persons, howsoever caused’ [Notice 2]
    Tom decides to carry his laptop to dinner in case it is stolen from his room.
    Unfortunately, on the way, he catches his shoe in a large hole in the stair carpet, and
    falls down the stairs breaking his arm and damaging his laptop.

Answer the following with respect to Notice 1 and Notice 2 (they are both exclusion
clauses), separately:

  1. Is the notice a term of the contract?
  2. What is the effect on each notice of the Consumer Rights Act 2015?

Advise Tom whether he can bring a claim in contract against the company for:
(1)the loss of his overnight bag, which has not been found, [Notice 1]
(2)the damage to his laptop [Notice 2], and
(3) the injury to his arm [Notice 2].

M1, M2 to Achieve a Merit Grade, you should be able to:
 Show that you have used several sources of information to explain and illustrate the
contract terms and their significance
 Explain the effect of the Consumer Rights Act 2015 on exclusion clauses and give
reasons to justify your conclusions
 Demonstrate an effective approach to study and submit the report on the specified date
.D1, D3 to Achieve a Distinction Grade, you should be able to:
 Evaluate how well consumers are protected by the law for exclusion clauses when
dealing with a business
 Solve the contract problem question demonstrating lateral and creative thinking

Task 3: Outcomes: 3.1, 3.2, 3.3, 4.1, 4.2
3.1 Contrast liability in tort with contractual liability
3.2 Explain the nature of liability in negligence
3.3 Explain how a business can be vicariously liable
4.1 Apply the elements of the tort of negligence and defences in different business situations
4.2 Apply the elements of vicarious liability in given business situations

GROUP SEMINAR AND INDIVIDUAL REPORT

To achieve a PASS Grade, you should be able to do the following:

You have been asked to contribute to a seminar about the Law of Tort and the role it plays in
business activities. You are part of a team who are identifying and explaining issues from the
basis of tortious liability. In each of the four scenarios (attached) identify what must be proved
to support an action in tort, contrast it with liability in contract law and advise liability in the
particular case.
The team has to allocate responsibility for the content of the seminar between its members but
each member may be questioned on any section of the content. Each member should be
prepared to ask questions during the seminar about the information presented by the other
members of the team. At the end of the seminar you are required to present your findings and
hand in a hard copy of the following:

1) Your presentation notes /report relating to one scenario.
2) Short notes on the content of the other three scenarios
3) Questions to be asked at the seminar for the other members of your team.

If you are not taking part in the seminar, then you are required to write a full report for all
of the scenarios.
SCENARIO 1
Robert decides to hold a party at the office of his business to celebrate a profitable first year.
Dina, who has not been invited, enters via the back door and when she sees Robert near her,
goes through a door, marked ‘Dangerous Steps’. The door opens inwards and Dina falls down
the steps into the cellar and breaks her wrist and damages a valuable gold bracelet.
Essa is three years old, and wanders away from his parents and trips near a low wall with a
sharp edge and receives a severe cut to his head.
Manal trips on a broken tile in the kitchen and falls into a bucket of bleach and burns her hands
and clothing.
Advise Robert as to any possible claims Dina, Essa and Manal may have under the
Occupiers’ Liability Acts 1957 and 1984 and the Defective Premises Act 1972.
Can (1) Dina, (2) Essa, and (3) Manal bring a claim against Robert?
 What must be proved under the Occupiers’ Liability Act 1957?
 What must be proved under the Occupiers’ Liability Act 1984?
 What must be proved under the Defective Premises Act 1972?
 Apply these Acts to what has happened to Dina, Essa and Manal.
 What remedy can each of them claim?

SCENARIO 2
Paul buys a new Brilliant brand washing machine and gives it to his brother, Peter. Peter uses it
successfully 5 times, but on the 6 th occasion the machine bursts into flames. He manages to put
out the fire but the machine is destroyed along with his designer clothes which were in it. The
laptop he uses for work which was on the shelf above the washing machine is damaged and
because of smoke damage the kitchen needs redecorating.
Advise Peter whether he can bring an action in contract, and /or in negligence, and/or
under the Consumer Protection Act 1987.
 Can Peter bring a claim based on contract?
 What must Peter prove if he brings a claim based on the tort of Negligence?
 What does the Consumer Protection Act 1987 provide?
 What must Peter prove to be successful in a claim based on the CPA1987?
 What are the possible remedies?
 Are there any defences available to the producer?

SCENARIO 3
Refit and Repair Ltd supplies and fits kitchens and bathrooms. Part of the business involves
manufacturing its own tiles and furniture. Jack is employed by Refit and Repair Ltd as a wood
machinist operating a bench mounted circular saw. Today, while operating the circular saw,
Jack caught his hand in the saw and severed 4 fingers. At the time this occurred, he had
worked a 12 hour shift and for the last 6 hours of his shift, his supervisor, Mansour, asked him to
lend his push stick (which he had been instructed to use for feeding small pieces of wood into
the machine) to a colleague. He was working to complete an urgent job. Jack admitted that he
had been distracted and chatting to a colleague when the accident occurred.
Advise Refit and Repair Ltd as to its liability in negligence, including vicarious liability
and whether any defences are available to the company.
 What is vicarious liability?
 When is an employer vicariously liable for the actions of its employees?
 What are the 4 common law duties owed by an employer to its employees?
 What are the 3 points to be proved in any claim based on negligence?
 Would Jack be successful in a claim against his employer, Refit and Repair Ltd, and
why?
 What is ‘contributory negligence?
 Would Refit and Repair Ltd be able to use the defence of ‘contributory negligence’ in any
claim by Jack?

SCENARIO 4

Prompt and Co, a firm of accountants and auditors, were engaged to prepare the accounts and
balance sheet for Quality Products plc, knowing the accounts were to be sent to Beth, a private
investor, who was thinking of buying shares in Quality Products plc. The accounts were
negligently prepared and showed the company as financially stable, even though the opposite
was true and the company had large unpaid debts. Beth showed the accounts to her friend
Bob. Beth bought AED1 million worth of shares and Bob bought AED 500,000 worth of shares.
Within 6 months, Quality Products plc went into liquidation and both Beth and Bob lost their
investments.
Advise (1) Beth, and (2) Bob whether they are likely to be successful in their claims in
negligence against Prompt and Co and what defences the company may have.
 What are the 3 points to be proved in any claim based on negligence?
 What does ‘pure economic loss’ mean and when can a claim be made for it?
 What must be proved in a claim for ‘negligent misstatement?
 Would Beth be successful in a claim for ‘negligent misstatement’ against Prompt and
Co?
 Would Bob be successful in a claim for ‘negligent misstatement’ against Prompt and Co?
 Would Prompt and Co have any defences?

M3 : To achieve a Merit Grade, you should be able to:
 Utilise a range of methods of communicating your evidence at the presentation and/or in
the written report to be handed in, including presenting and submitting the work at the
specified time
.D2: To achieve a Distinction Grade, you should be able to:
 Participate in the group discussion with the other group members at the presentation in a
coordinated and effective way AND/OR show independence in the way you have
prepared the full report
Task Grading Criteria
Task 1 – Individual report 1.1,1.2, 2.1, M1, M2, D1
Task 2 –Individual report 1.3, 2.2, 2.3, M1, M2,

D1, D3

Task 3 – Group Seminar &
Individual Report

3.1, 3.2, 3.3, 4.1 & 4.2,
M3, D2

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