INTRODUCTION TO BUSINESS LAW INSTRUCTIONS: Word Limit: 3,000 Assessment Weighting: 100% Number of questions set: ONE QUESTION WITH TWO PARTS. BOTH PARTS TO BE ANSWERED. EACH PARTS CARRY MARKS AS INDICATED. YOU ARE ADVISED TO DIVIDE THE WORD LIMIT EQUALLY BETWEEN BOTH PARTS OF THE QUESTION. Question 1a) Answer ALL the following questions. You may wish to use appropriate case laws in order to support your answers. Under the English Law of Contract, contracts are based on agreement. Without agreement, there can be no contract. Discuss the statement; in particular, concentrating on whether agreement and contract are synonymous terminologies. (20 marks) One of the greatest threats … (to business relationship) is the incidence of disputes. Resolving them by litigation is frequently lengthy and expensive. Arbitration is often as bad or worse’. Lord Denning in Dawney Ltd. v. FG Minter [1971] 2 All ER 1389. With reference to alternative dispute mechanisms, evaluate the usefulness of alternative dispute resolution in resolving disputes between businesses. (30 marks) Question 1b) On Monday, John placed an advertisement to sell his caravan, ‘Super Trini-Cruise 2 berth motorhome, Excellent condition, 1.8 Turbo Diesel, 25000 miles, only £9,500 – payable in cash. First to see will buy’. John also included the details of his home address and telephone number in the advertisement. On Tuesday, Randy visited John and expressed his willingness to purchase the caravan however; he is only willing to pay £8,500 in cash. John refused to accept the deal despite Randy’s persuasion. On the same day, Trevor posted a letter to John, indicating his desire to buy the caravan as advertised and shall, in person, pay John £9,000 cash on Friday. Trevor had previously seen John’s caravan during the Grand Regional Caravan Roadshow a fortnight ago and has good idea of the specifications of the caravan and was very impressed with it. However, the letter got lost in the post and never arrived at John’s address. On Thursday, Abi went over to John’s and inspected the caravan. Abi was happy with the state and condition of the caravan, and enquired whether it would be possible to pay tomorrow afternoon as she needed time to prepare the money. John agreed to this. On Friday morning, Trevor turned up at John’s premise with the £9,000 cash but John refused to sell the caravan to him. As soon as Trevor left, Abi rang John indicating that she no longer wishes to purchase the caravan since her partner opposed to the idea. Desperate for a buyer, John rang Randy and offered to sell his caravan for £8,500, payable either in cash or cheque. Randy immediately agreed to this and drove over to John’s property with the cash. Halfway through the journey however, Randy was involved in a car accident which left him severely injured and had to be hospitalised for 2 months. Fuming with anger over his recent luck, John informed his son, Peter that he was selling his caravan for £4,500. Peter agreed to this and on Sunday, arrived with him the said amount only to be informed that John was no longer willing to sell it at that price. Advise the parties with regards to their possible contractual claim. (50 marks)
"MsoNormal">Belle                            Sell-o-rama