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Law and business agreements assignment
1. Law and Business AgreementsBA (Hons.) Business Management5/22/2010<br />N.B Case Studies, Abstracts, Contents Pages and Assignment questions are not included in the word count.Contents Page<br />Abstract2Explain the possible legal effects of Arthur’s advertisement supporting what you say with examples of appropriate English law.3Using appropriate English law examples discuss and give your reasons as to whether or not Arthur is likely to be in a binding contract at any point with Rodney, Thelma, Del, and Louise.3Discuss any remedies, which might be available to Arthur, Rodney, Thelma, Del, or Louise, ensuring that you quantify the value of any damages you consider, mentioning appropriate English law.4Explain generally, using English Law examples, the circumstances in which an attempt by a contracting party to avoid liability for their acts, errors and omissions is likely to be legally effective5Using Appropriate English Laws and case examples, discuss your reasons as to whether or not the Best Stay Hotel’s attempts to exclude liability are effective.5Adams v Lindsell [1818] 106 ER 250WT Thompson Ltd v Robinson Gunmakers Ltd {1995] Ch 177Olley v Marlborough Court Hotel [1949] 1 KB 532. McCutchen v David MacByrne Ltd [1964] 1 WLR 125Parker v South Eastern Railways Co (1877) 2 COD 416.References7<br />Abstract: this paper will focus on two case studies and apply the practices of English Law and Contract Law to both. The study will look at the possible legal implications to all parties involved in the case studies and apply the relevant legislation to each situation. The first case study looks at a car dealership and argues for or against whether Arthur may have any legal binding contract with the four potential customers. Secondly, it will discuss any legal implications the advertisement may have and look at possible remedies to each party member within the case study.<br />The second case study looks at the effectiveness of the discharge of liability to the hotel and/or the guest, to any errors or omissions made to the guest or the hotel and to argue as to whether the exemptions are effective in terms of the guests damages to the vehicle and to her personal possessions<br />Explain the possible legal effects of Arthur’s advertisement supporting what you say with examples of appropriate English law.<br />According to Turner (2007), any advertisement placed in a newspaper is seen as an invitation to treat. An invitation to treat is stating that the advertiser is willing to be legally binding to the contract in question, if the invitation to treat is accepted. Halsburys’ Law (2009) states that advertisement of which the advertisers intends to enter into a bilateral contract are ‘often found to be invitations to treat’ The courts of whom were trying the case of Partridge v Crittenden [1968] 1 WLRM 1204 stated that the advertisement was an invitation to treat as it was the starting point of any negotiations.<br />Using appropriate English law examples discuss and give your reasons as to whether or not Arthur is likely to be in a binding contract at any point with Rodney, Thelma, Del, and Louise.<br />Rodney.<br />The case study quotes that Rodney wrote a letter of acceptance stating that, he is intending to accept the invitation to treat by offering to purchase. Turner (2007) states that a contract is formed when then letter is posed through a post box, owned by the Royal Mail, and of which is correctly stamped and addressed and is not delivered to a postman whilst he on his delivery. As can be seen in the case of London and Northern Bank, exp parte Jones [1900] 1 Ch 220. It is at the point where the letter is posted into a postal box, that the contract is formed and not when the letter reaches the recipient. This can be seen in the law case of Adams v Lindsell [1818] 106 ER 250.<br />However, according to Turner (2007), for a valid statement of acceptance to exist, it must be bound absolutely to the terms of the offer. The term of the offer was the payment in cash, but Rodney sent a cheque. Turner (2007) further states that any attempt to alter the terms of the contract is not an acceptance but is seen as a counter-offer. If Arthur was to accept these new terms of the agreement, this can form the basis of the agreement.<br />Louise<br />Focusing on Louise’s situation, no binding contract was created until the counter offer was accepted by the offeror. Turner (2009) states that the new terms of the agreement can be the basis of a formed contract if one party makes a counter offer, which, according to Halbury (2009) is seen as a rejection to the original offer, is accepted. Arthur was advertising the vehicle at a price of £7,500. However, Louise made a counter offer of £8,000. It was at the point at which Arthur accepts this counter offer at which the agreement was formed. <br />Thelma<br />Thelma makes a counter offer and effectively rejects the original offer. Arthur does not accept the counter-offer and therefore no binding contract is formed here. The case of Hyde and Wrench [1840] 49 ER 132 proves this law.<br />Del<br />Del fully agreed to the terms of the offer and accepted the invitation to treat. The acceptance was unconditional and was a mirror image of the offer. There has been no value of which Del has given Arthur for this request so Del has forbeared nothing to keep the promise enforceable. This means that it may be seen that there is no binding contract. This was the case of Dunlop v Selfridges [1915] AC 847.<br />Discuss any remedies, which might be available to Arthur, Rodney, Thelma, Del, or Louise, ensuring that you quantify the value of any damages you consider, mentioning appropriate English law.<br />Reflecting on Arthur’s situation sheds some light upon a quantifiable damage known as an unliquidated damage. Turner’s (2007) definition of this is ‘to put the claimant in the position financially that he would have been had the contract been properly performed’. <br />The courts will undergo a causation test to assess the sum of damages for the breach of contract and look at whether the contract breach is the forth-standing reason for the losses incurred. <br />The amount to which Arthur may be able to claim will depend on how easily he can sell the car to another party: if there is sufficient demand existing. This can be explained with the case example of WT Thompson Ltd v Robinson Gunmakers Ltd {1955] Ch 177.<br />Explain generally, using English Law examples, the circumstances in which an attempt by a contracting party to avoid liability for their acts, errors and omissions is likely to be legally effective<br />It’s possible that the hotel cannot rely on this exemption clause because they gave the guest insufficient time to agree to the clause. The notice in the case study, like in the case study of Olley v Marlborough Court Hotel, was on the side of the bedroom safe, meaning, that if the guest had not signed an agreement upon checking into the hotel, and therefore the guest is not prime facie to the agreement. However, if the guest had signed an agreement stating this clause but did not read the clause, the guest will still be binding to that clause (Turner, 2007), as can be demonstrated in the case of L’Estrange v Graucob. <br />Another argument is there may be a possibility that the guest had stayed at this hotel previously and this policy may have been in place during these previous visits. Referring to Turner (2007), it states that if the parties have had previous dealings on the same contractual terms, one could argue that the contractual terms are a part of the agreement if there has been prior knowledge of these terms. ‘Lord Denning put it,’ previous dealings re only relevant if they prove knowledge of the terms and not constructive and assent to them’’ (Turner, 2007) <br />Using Appropriate English Laws and case examples, discuss your reasons as to whether or not the Best Stay Hotel’s attempts to exclude liability are effective.<br />Looking at the hotels attempts to exclude liability for the theft of all personal possessions in the bedroom safe, we can refer to a case study of Olley v Marlborough Court Hotel [1949] 1 KB 532. This may mean that the hotels attempts to exclude liability are ineffective and the courts will uphold this if these dealings do not show a consistent course of action. This can be demonstrated in the case study of McCutchen v David MacByrne Ltd [1964] 1 WLR 125. <br />Progressing on the claimant’s injury to the vehicle, the contra preferentem rule can be applied. It is stated that if a party wishes to uphold their exclusion of liability, they must specify the circumstances to which the exemptions are to be claimed. (Turner, 2009) <br />The hotelier must show that they brought to the guests attention to notice erected outside the hotel prior to the guest forming the agreement with the hotel. This can be demonstrated in practice with the case example of Parker v South Eastern Railways Co (1877) 2 COD 416.<br />Conclusion<br />The notice constrained ambiguity in that it was not clear as to the circumstanced to which any damages may occur are covered for the hotel to lift their liability.<br />The hotel guest was not given sufficient time to be made aware of the notice on the safe as it was erected in the bedroom and not at the place where the contract would be formed.<br />There was no evidence to suggest that the guest used her vehicle again and therefore drawing on the theory that she may have returned to the hotel parking in a different location to the one the parking attendant requested.<br />The circumstance to which the hotel attempts to exempt themselves from liability from their acts, errors or omissions would be legally effective is if the guest had signed an agreement stating the clause on the safe. .<br />Another possible circumstance is that if the guest had stayed at this hotel previously, it could be argued that the guest was made aware of the hotels policies regarding their exemption from liability from ‘previous dealings’. <br />References<br />Turner, C., 2007, Unlocking Contract Law. 2nd ed. Hodder Education.<br />Hailsburys Law of England, 2009. Formation of Contract [Online] Available at: http://www.lexisnexis.com/uk/legal/results/pubTreeViewDoc.do?nodeId=TABMAAD&pubTreeWidth=23%25. [Accessed 22 May 2010]<br />Hailsburys Law of England, 2009. Offer and Acceptance [Online] Available at: http://www.lexisnexis.com/uk/legal/results/pubTreeViewDoc.do?nodeId=TABMAADAAC&pubTreeWidth=23%25<br />[Accessed 22 May 2010]<br />Hailsburys Law of England, 2009. Offer and Invitation to Treat [Online] Available at: http://www.lexisnexis.com/uk/legal/results/pubTreeViewDoc.do?nodeId=TABMAADAACAAC&pubTreeWidth=23%25 <br />[Accessed 22 May 2010]<br />Law of Contract, 2009. Formation of the Contract [Online] Available at: http://www.lawofcontract.com. [Accessed: 22 May 2010]<br />Adams v Lindsell [1818] 106 ER 250WT Thompson Ltd v Robinson Gunmakers Ltd {1995] Ch 177Olley v Marlborough Court Hotel [1949] 1 KB 532. McCutchen v David MacByrne Ltd [1964] 1 WLR 125Parker v South Eastern Railways Co (1877) 2 COD 416.Dunlop v Selfridges [1915] AC 847L’Estrange v Graucob<br />
![Law and Business AgreementsBA (Hons.) Business Management5/22/2010<br />N.B Case Studies, Abstracts, Contents Pages and Assignment questions are not included in the word count.Contents Page<br />Abstract2Explain the possible legal effects of Arthur’s advertisement supporting what you say with examples of appropriate English law.3Using appropriate English law examples discuss and give your reasons as to whether or not Arthur is likely to be in a binding contract at any point with Rodney, Thelma, Del, and Louise.3Discuss any remedies, which might be available to Arthur, Rodney, Thelma, Del, or Louise, ensuring that you quantify the value of any damages you consider, mentioning appropriate English law.4Explain generally, using English Law examples, the circumstances in which an attempt by a contracting party to avoid liability for their acts, errors and omissions is likely to be legally effective5Using Appropriate English Laws and case examples, discuss your reasons as to whether or not the Best Stay Hotel’s attempts to exclude liability are effective.5Adams v Lindsell [1818] 106 ER 250WT Thompson Ltd v Robinson Gunmakers Ltd {1995] Ch 177Olley v Marlborough Court Hotel [1949] 1 KB 532. McCutchen v David MacByrne Ltd [1964] 1 WLR 125Parker v South Eastern Railways Co (1877) 2 COD 416.References7<br />Abstract: this paper will focus on two case studies and apply the practices of English Law and Contract Law to both. The study will look at the possible legal implications to all parties involved in the case studies and apply the relevant legislation to each situation. The first case study looks at a car dealership and argues for or against whether Arthur may have any legal binding contract with the four potential customers. Secondly, it will discuss any legal implications the advertisement may have and look at possible remedies to each party member within the case study.<br />The second case study looks at the effectiveness of the discharge of liability to the hotel and/or the guest, to any errors or omissions made to the guest or the hotel and to argue as to whether the exemptions are effective in terms of the guests damages to the vehicle and to her personal possessions<br />Explain the possible legal effects of Arthur’s advertisement supporting what you say with examples of appropriate English law.<br />According to Turner (2007), any advertisement placed in a newspaper is seen as an invitation to treat. An invitation to treat is stating that the advertiser is willing to be legally binding to the contract in question, if the invitation to treat is accepted. Halsburys’ Law (2009) states that advertisement of which the advertisers intends to enter into a bilateral contract are ‘often found to be invitations to treat’ The courts of whom were trying the case of Partridge v Crittenden [1968] 1 WLRM 1204 stated that the advertisement was an invitation to treat as it was the starting point of any negotiations.<br />Using appropriate English law examples discuss and give your reasons as to whether or not Arthur is likely to be in a binding contract at any point with Rodney, Thelma, Del, and Louise.<br />Rodney.<br />The case study quotes that Rodney wrote a letter of acceptance stating that, he is intending to accept the invitation to treat by offering to purchase. Turner (2007) states that a contract is formed when then letter is posed through a post box, owned by the Royal Mail, and of which is correctly stamped and addressed and is not delivered to a postman whilst he on his delivery. As can be seen in the case of London and Northern Bank, exp parte Jones [1900] 1 Ch 220. It is at the point where the letter is posted into a postal box, that the contract is formed and not when the letter reaches the recipient. This can be seen in the law case of Adams v Lindsell [1818] 106 ER 250.<br />However, according to Turner (2007), for a valid statement of acceptance to exist, it must be bound absolutely to the terms of the offer. The term of the offer was the payment in cash, but Rodney sent a cheque. Turner (2007) further states that any attempt to alter the terms of the contract is not an acceptance but is seen as a counter-offer. If Arthur was to accept these new terms of the agreement, this can form the basis of the agreement.<br />Louise<br />Focusing on Louise’s situation, no binding contract was created until the counter offer was accepted by the offeror. Turner (2009) states that the new terms of the agreement can be the basis of a formed contract if one party makes a counter offer, which, according to Halbury (2009) is seen as a rejection to the original offer, is accepted. Arthur was advertising the vehicle at a price of £7,500. However, Louise made a counter offer of £8,000. It was at the point at which Arthur accepts this counter offer at which the agreement was formed. <br />Thelma<br />Thelma makes a counter offer and effectively rejects the original offer. Arthur does not accept the counter-offer and therefore no binding contract is formed here. The case of Hyde and Wrench [1840] 49 ER 132 proves this law.<br />Del<br />Del fully agreed to the terms of the offer and accepted the invitation to treat. The acceptance was unconditional and was a mirror image of the offer. There has been no value of which Del has given Arthur for this request so Del has forbeared nothing to keep the promise enforceable. This means that it may be seen that there is no binding contract. This was the case of Dunlop v Selfridges [1915] AC 847.<br />Discuss any remedies, which might be available to Arthur, Rodney, Thelma, Del, or Louise, ensuring that you quantify the value of any damages you consider, mentioning appropriate English law.<br />Reflecting on Arthur’s situation sheds some light upon a quantifiable damage known as an unliquidated damage. Turner’s (2007) definition of this is ‘to put the claimant in the position financially that he would have been had the contract been properly performed’. <br />The courts will undergo a causation test to assess the sum of damages for the breach of contract and look at whether the contract breach is the forth-standing reason for the losses incurred. <br />The amount to which Arthur may be able to claim will depend on how easily he can sell the car to another party: if there is sufficient demand existing. This can be explained with the case example of WT Thompson Ltd v Robinson Gunmakers Ltd {1955] Ch 177.<br />Explain generally, using English Law examples, the circumstances in which an attempt by a contracting party to avoid liability for their acts, errors and omissions is likely to be legally effective<br />It’s possible that the hotel cannot rely on this exemption clause because they gave the guest insufficient time to agree to the clause. The notice in the case study, like in the case study of Olley v Marlborough Court Hotel, was on the side of the bedroom safe, meaning, that if the guest had not signed an agreement upon checking into the hotel, and therefore the guest is not prime facie to the agreement. However, if the guest had signed an agreement stating this clause but did not read the clause, the guest will still be binding to that clause (Turner, 2007), as can be demonstrated in the case of L’Estrange v Graucob. <br />Another argument is there may be a possibility that the guest had stayed at this hotel previously and this policy may have been in place during these previous visits. Referring to Turner (2007), it states that if the parties have had previous dealings on the same contractual terms, one could argue that the contractual terms are a part of the agreement if there has been prior knowledge of these terms. ‘Lord Denning put it,’ previous dealings re only relevant if they prove knowledge of the terms and not constructive and assent to them’’ (Turner, 2007) <br />Using Appropriate English Laws and case examples, discuss your reasons as to whether or not the Best Stay Hotel’s attempts to exclude liability are effective.<br />Looking at the hotels attempts to exclude liability for the theft of all personal possessions in the bedroom safe, we can refer to a case study of Olley v Marlborough Court Hotel [1949] 1 KB 532. This may mean that the hotels attempts to exclude liability are ineffective and the courts will uphold this if these dealings do not show a consistent course of action. This can be demonstrated in the case study of McCutchen v David MacByrne Ltd [1964] 1 WLR 125. <br />Progressing on the claimant’s injury to the vehicle, the contra preferentem rule can be applied. It is stated that if a party wishes to uphold their exclusion of liability, they must specify the circumstances to which the exemptions are to be claimed. (Turner, 2009) <br />The hotelier must show that they brought to the guests attention to notice erected outside the hotel prior to the guest forming the agreement with the hotel. This can be demonstrated in practice with the case example of Parker v South Eastern Railways Co (1877) 2 COD 416.<br />Conclusion<br />The notice constrained ambiguity in that it was not clear as to the circumstanced to which any damages may occur are covered for the hotel to lift their liability.<br />The hotel guest was not given sufficient time to be made aware of the notice on the safe as it was erected in the bedroom and not at the place where the contract would be formed.<br />There was no evidence to suggest that the guest used her vehicle again and therefore drawing on the theory that she may have returned to the hotel parking in a different location to the one the parking attendant requested.<br />The circumstance to which the hotel attempts to exempt themselves from liability from their acts, errors or omissions would be legally effective is if the guest had signed an agreement stating the clause on the safe. .<br />Another possible circumstance is that if the guest had stayed at this hotel previously, it could be argued that the guest was made aware of the hotels policies regarding their exemption from liability from ‘previous dealings’. <br />References<br />Turner, C., 2007, Unlocking Contract Law. 2nd ed. Hodder Education.<br />Hailsburys Law of England, 2009. Formation of Contract [Online] Available at: http://www.lexisnexis.com/uk/legal/results/pubTreeViewDoc.do?nodeId=TABMAAD&pubTreeWidth=23%25. [Accessed 22 May 2010]<br />Hailsburys Law of England, 2009. Offer and Acceptance [Online] Available at: http://www.lexisnexis.com/uk/legal/results/pubTreeViewDoc.do?nodeId=TABMAADAAC&pubTreeWidth=23%25<br />[Accessed 22 May 2010]<br />Hailsburys Law of England, 2009. Offer and Invitation to Treat [Online] Available at: http://www.lexisnexis.com/uk/legal/results/pubTreeViewDoc.do?nodeId=TABMAADAACAAC&pubTreeWidth=23%25 <br />[Accessed 22 May 2010]<br />Law of Contract, 2009. Formation of the Contract [Online] Available at: http://www.lawofcontract.com. [Accessed: 22 May 2010]<br />Adams v Lindsell [1818] 106 ER 250WT Thompson Ltd v Robinson Gunmakers Ltd {1995] Ch 177Olley v Marlborough Court Hotel [1949] 1 KB 532. McCutchen v David MacByrne Ltd [1964] 1 WLR 125Parker v South Eastern Railways Co (1877) 2 COD 416.Dunlop v Selfridges [1915] AC 847L’Estrange v Graucob<br />](https://image.slidesharecdn.com/lawandbusinessagreementsassignment-100819062054-phpapp02/85/Law-and-business-agreements-assignment-1-320.jpg)
