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A Level Law (Contract) Assignment 2 - Consideration

Task

You will be set one of the following questions:

 

1. Analyse the circumstances in which the performance of an existing duty may amount to valid consideration.

(Q1, June 2001)

or

2. Jake is developing a leisure centre in time for the summer holiday trade and he contracts with Kanbild to undertake the installation of a swimming pool. Kanbild contracts with Mariner to supply pipes to build the pool. Kanbild begins work in January, but in May he informs Jake that he will not be able to complete the work because of the steep increase in the cost of materials.

Jake agrees to pay more than was originally agreed, so that Kanbild can obtain the materials needed to complete the pool on time. When the work is finished Jake refuses to pay the extra £2000. Six months after Mariner supplied the pipes, he has still not been paid by Kanbild. Both Kanbild and Mariner are now requesting payment from Jake.

Advise Jake whether he must pay Kanbild the extra £2000 and Mariner for the pipes.

(Q6 June 2000)

or

3. Sprinters displays a poster in its shop window advertising a sale and stating that sports goods will be sold at 'rock bottom prices' during the summer holiday period. Tom sees the poster and buys a new tennis racquet. He is annoyed, however, to see an identical racquet at a lower price in another shop later that day and returns to Sprinters requesting a refund.

Sprinters also advertises a special sale on Saturday in which the first 30 customers may purchase any item at half price. Ursula queues early on Saturday and is customer number 28. She selects an exercise cycle, but is told by the cashier that she will have to pay the full price as the manager has just decided to end the promotion.

Meanwhile, Sprinters has become so busy that Vanda, a sales assistant who normally finishes work at 1 o'clock, is asked to stay until 5 o'clock. When she is leaving at the end of the day the manager of Sprinters promises to pay her a £20 bonus 'for being so very helpful'. However when she receives her pay cheque it is only for the normal amount.

Advise Sprinters of any liability to Tom, Ursula and Vanda.

(Q6 June 1999)

or

4. Ursula's neighbour, Victor, regularly cleans her windows, for which she pays him £10. On one occasion whilst he is doing the work, Ursula mentions that she is worried about her garden which is in need of maintenance. Victor replies that he will do some work on it when he has the time. Two weeks later Ursula arrives home to find that Victor has mowed the lawns, planted new trees in the garden and cleaned her windows. She is very pleased and promises to pay him £70 for the work on the garden and the usual £10 for cleaning the windows.

Ursula receives a telephone call from Yolanda who supplied Victor with the trees for Ursula's garden. Yolanda requires payment of £50.

Advise Ursula whether she must pay Victor and Yolanda.

(Q8 June 1998)

or

5. Evaluate the circumstances in which performance of an existing duty may amount to valid consideration.

(Q4 June 1997)

or

6. Alan and Beth decide to extend and redecorate their house, to improve the accommodation which elderly Aunt Carrie occupies, and to provide space for the family's hobbies. Pleased with the result, they hold a small party. Aunt Carrie's accountant, David, is impressed with the work on the house, and offers to pay £1,000 towards it, in order to help support Aunt Carrie. Alan and Beth thank David, and look forward to receiving the money. Two weeks after the party it has not arrived.

Edmund, a wealthy local businessman, who has loaned Alan and Beth £500 towards the cost of the improvements, is also impressed with the work and tells the couple they need not repay the loan. They thank him, saying that they will now be able to go for a short holiday, and take Aunt Carrie with them. However, on return from their holiday, they find a letter informing them that Edmund requests the payment of £500 after all.

Advise Alan and Beth concerning the money from David and the loan from Edmund.

(Q7 June 1996)

or

7. Certain cases raise 'the suspicion that where a court is determined to make a promise enforceable it can always "find" something of value for which the promise is exchanged.' (Downes, Textbook on Contract)

Discuss this statement in relation to the doctrine of consideration.

(Q1 June 1995) (See also Q7 June 1995)

or

8. Leo is a self-employed carpenter. His business is very successful and he does not have enough time to prepare his annual accounts. He telephones Enid, his recently retired secretary, and asks her if she would be prepared to help him. Enid agrees and spends two weeks preparing the accounts. After she has finished, Leo promises to pay her £200 as a sign of his gratitude. Enid does not need the money but asks Leo to send it to her daughter, Cheryl, who is unemployed. One month later Leo has not sent the money to Cheryl and he tells Enid that he has changed his mind about the payment.

Advise Enid and Cheryl.

(Q7 June 1994)

or

9. In August 1994 Idyllic Hotels Ltd employ Budget Builders to build a 50 bedroom luxury hotel for £20 million. The contract states that the hotel must be completed by May 1st 1996. After twelve months the work on the building has fallen behind and Budget Builders approach Idyllic Hotels to explain that they are in financial difficulties and will not be able to complete the hotel on time. The hotel is fully booked for the 1996 holiday season and Idyllic Hotels offer to pay Budget Builders an additional £125,000 to ensure that the hotel is built in time. Budget Builders agree to this arrangement and continue with the building work. In March 1996, just before the hotel is completed, Idyllic Hotels inform Budget Builders that they do not intend to pay them the additional £125,000.

Advise Budget Builders.

(Q7 June 1993)

or

10. Is it correct to say that the performance of an existing contractual duty will never amount to sufficient consideration?

(Q1 June 1992)

 

Guidance

My students should see me in the Law workshop or email me if help is required with this assignment.

 

Set: [date]

Due: [date]

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