Legal Problems

This document provides solutions to various legal problems and case studies. It covers topics such as contract law, consideration, intention, and more. Each problem is discussed in detail, including the issue, legal rule, relevant case laws, and their application in the present study. The document also includes references for further reading.

Legal Problems
ASSIGNMENT 2

Legal Problems
Table of Contents
Problem 1...................................................................................................................................4
Issue........................................................................................................................................4
Legal rule...............................................................................................................................4
Legal case laws......................................................................................................................4
Application in present study...................................................................................................5
Problem 2...................................................................................................................................5
Issue........................................................................................................................................5
Legal rule...............................................................................................................................6
Legal case laws......................................................................................................................6
Application in present study...................................................................................................6
Problem 3...................................................................................................................................6
Issue........................................................................................................................................6
Legal rule...............................................................................................................................7
Legal case laws......................................................................................................................7
Application in present study...................................................................................................7
Problem 4...................................................................................................................................8
Issue........................................................................................................................................8
Legal rule...............................................................................................................................8
Legal case laws......................................................................................................................8
Application in present study...................................................................................................9

Legal Problems
Problem 5...................................................................................................................................9
Issue........................................................................................................................................9
Legal rule...............................................................................................................................9
Legal case laws......................................................................................................................9
Application in present study.................................................................................................10
Problem 6.................................................................................................................................10
Issue......................................................................................................................................10
Legal rule.............................................................................................................................10
Legal case laws....................................................................................................................11
Application in present study.................................................................................................11
References................................................................................................................................12

Legal Problems
PROBLEM 1
Issue
The issue in the case is regarding whether the intention of the party creates the legal and
binding agreement.
Legal rule
For creating a valid contract, there must be five elements; offer, acceptance, consideration,
the intention of the parties and competence to the contract, thus the legal relationship is one
of the essential parts of a valid contract (Carter, and Courtney, 2017).
In the given study, it is stated that Charlie agrees to sell his business to his sister Ali for
$45000; therefore the Charlie intends to enter into the legal relationship with his sister.
Legal case laws
In case of Balfour v Balfour (1919), the husband made the promise to his wife for payment of
a certain amount. However he failed to pay the amount, thereby sued by his wife. Court
declared that is no legally binding agreement exists between them, so the action taken by her
failed.
In the case of Todd v Nicol (1957), Nicol sent a letter to Todd for stay at her place, but due to
the argument with Todd, Nicol does not like to stay at her place. In this case, the court stated
that although the contract is considered under the social or domestic contract the legal
assumption rebutted and it is governed as per the contract law and cannot remove Todd from
her place.
Another case is related to the above issue is related with the Ermogenous v Greek Orthodox
Community. Annual and long service leave were claimed by Ermogenous, however the

Legal Problems
Greek Orthodox community protected themselves by stating that contract between the parties
have no intention to enter in legally binding contract. Therefore, the agreement between the
parties conducted with the intention for entering into the legal relationship.
Application in the present study
In the given study, Charlie agrees to sell his business to his sister Ali for $ 45000. Although
the contract between the Charlie and his sister is regarded as the domestic or social contract,
but there was the intention of the parties to enter into the legal. Additionally, a reasonable
person would undoubtedly consider the agreement to be enforceable and terms and conditions
were considered in written form. Therefore if the Ali sues Charlie for breach of contract, then
she will win.
PROBLEM 2
Issue
The issue is related with the consideration to the local police, whether they provided the
sufficient consideration or they are merely performing their public duty.
Legal rule
The existence of the consideration for the validity of the contract is an essential element and
consideration is stated as mutual promise (Bayern, 2015). Further performance of the existing
duty is not consideration for new promises (O'Sullivan, and Hilliard, 2016).
Legal case laws
In the case of Glasbrook v Glamorgan (1925), during the strike by the miners, the police
provided the extra protection to them on their request. By the end of the strike the police
submitted the invoice for the payment of extra cost of offering the protection. In this case, the

Legal Problems
court held that police provide the extra staff for the protection and it was beyond their
existing duty, therefore they entitled to payment.
Application in present study
In this case, Nick for organising a party approaches the local police. The local police by
appointing extra officer at the venue for the duration of the party providing the protection and
it is considered as the beyond performance of their existing duty (Foster, and Herring, 2015).
By this, Nick will not win and he has to provide the sufficient consideration to local police.
PROBLEM 3
Issue
Issue in the case is of renegotiation of debt, whether the part payment of debt is regarded as
the sufficient consideration.
Legal rule
A promise to agree the part payment of debt, in release of the prevailing debt is not valid
consideration and there are some exemptions attached to it (Kar, 2016).
Legal case laws
In the Pinnel’s case (1602), Cole (defendant), owed the Pinnel (plaintiff) of £ 810s. By the
request by the Pineel, coal paid £52s one month before the due date and agreed that this part
payment would discharge the entire present debt. Pinnel sued coal for the recovery. The court
held that it is not proper consideration however is linked with exception to the general rule, as
the debt was paid before due date thus is good consideration (Burrows, 2018).

Legal Problems
Application in the present study
In the given study, Mike owes Helen $ 5000. Helen accepts the part payment $4000 for
discharge the entire debt. Mike agreed to check the steering in the car of the Helen, thereby
constitute the sufficient consideration for her promise not to sue (Schwarcz, 2015). If the
Helen sues Mike for the outstanding part of his debt, then she will not win.

Legal Problems
PROBLEM 4
Issue
Issue is whether the video shop advertising special membership relating to DVDs offer detail
relating to unusual and onerous late fee to develop legal boundation.
Legal rule
Andrews (2015), specifies that, it is mandatory to provide reasonable notice regarding
unsigned terms to ensure that signee is bound by the contract.
Legal case laws
In accordance to unfair contract Terms Act 1977 it is mandatory to provide reasonable and
adequate notice of exclusion clause (Fried, 2015). Further, as per assertions of Knapp, Crystal
and Prince (2016), in case if the term is unusual or arduous, providing extra notice is
compulsory. Interfoto Picture Library v Stilletto Ltd [1998] can better cite the Lizzie case.
In this case 47 photographic transparencies were delivered by Interfoto to Stilletto under a
jiffy bag, but these were not used in event. Stilletto did not read the he terms and conditions
specified by Interfoto were stating that £5 will be charged for each transparency.
Furthermore, considering the same court embraced that holding fee was ineffective. Dillon LJ
declared that specifically onerous or unusual term should have special notice.
Application in present study
The decision taken in the case of Interfoto will be referred in the present case of Lizzie. Since
the reasonable notice was not provided to her and as specified above it is mandatory to give
special notice regarding unusual or onerous fees. Thus, considering the same if store sues
Lizzie then the store will not win.

Legal Problems
PROBLEM 5
Issue
Is the Tori is bounded by exemption clause in sales agreement even if the clauses are not
examined by her.
Legal rule
In case an individual signs a contract having contractual appearance in it, the person will be
bound by terms and conditions specified under it (O'Sullivan and Hilliard, 2016).
Legal case laws
The case law of L’s Estrange v Graucob can be cited herein to explain present case
effectively. Under this case, defendant vended the plaintiff, a shopkeeper, slot machine for
cigarettes with terms which barred the common rights of applicant. Further, the decision
taken by the court in this, case those conditions were binding on the claimant since the
contract was signed by her (L’Estrange v E. Graucob Ltd [1934] 2 KB 394, 2018).
Application in present study
In the present case since the conditions are specified in the contract and was signed, this
implies that she agrees with conditions defined in contract. Tori must read the document
before signing it so she cannot win the case. Hence, Tori is bounded by the exemption clause
in sales agreement.

Legal Problems
PROBLEM 6
Issue
In current case there are two issues, primarily, did the Sandra has remedy in support of Mr.
Smith and to ascertain whether the photocopier is of merchantable quality or fit for purpose
or not.
Legal rule
In accordance to specified rule of Goods Act 1958, goods delivered to the buyer which are
not examined by him, cannot be accepted until there is reasonable chance of exploration to
determine whether the order is completed according to the contract. As per study of Poole
(2016), rule 7.26 specifies that seller is bound to complete all the terms specified into the
contract by the buyer otherwise he might relinquish the condition or can elect the violation of
such conditions as contravene of warrant. As per section 6 (6) Part II of Sale of Goods Act
goods of any kinds are deemed to be of merchantable quality in case they are appropriate for
the buying purpose.
Legal case laws
The term merchantable quality is an inferred condition which is the state of goods sold in the
field of business (Willett, 2016). In David Jones v. Wills (1934) 52 CLR 110 case, claimant
has procured pair of shoes from the defendant, and after wearing it he slips and faced injury.
Section 16 (1) (b) states that there is a violation of conditions where by the shoes are not
merchantable and didn’t fit for the purpose (YUSOFF, 2014). In the case law of Frank v.
Grosvenor Motor Auctions Pty. Ltd (1960), Court held that the provision was to exclude
those defects which are revealed from the actual inspection.

Legal Problems
Application in present study
The case of David Jones v. Wills (1934) 52 CLR 110 states that Sandra has the right against
the seller for fitness for purpose as she states the requirements which she wants in the
machine, but the machine was not according to her needs. Sandra has the rights against
Smith’s by which she can claim if the machine is not in merchantable condition.

Legal Problems
REFERENCES
Andrews, N., 2015. Contract law. Cambridge University Press.
Bayern, S., 2015. Offer and Acceptance in Modern Contract Law: A Needles Concept. Cal.
L. Rev., 103, p.67.
Burrows, A.S., 2018. Contract, Tort and Restitution—A Satisfactory Division or
Not?.In Restitution (pp. 3-53).Routledge.
Carter, J.W. and Courtney, W., 2017.Unexpressed Intention and Contract
Construction. Oxford Journal of Legal Studies, 37(2), pp.326-356.
Foster, C. and Herring, J., 2015. Introduction.In Altruism, Welfare and the Law (pp. 1-
5).Springer, Cham.
Fried, C., 2015. Contract as promise: A theory of contractual obligation. Oxford University
Press, USA.
Kar, R., 2016. Contract as empowerment. U. Chi. L. Rev., 83, p.759.
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2016. Problems in Contract Law: cases and
materials. Wolters Kluwer Law & Business.
L’Estrange v E. Graucob Ltd [1934] 2 KB 394, 2018. Online. Available through
<https://www.lawteacher.net/cases/lestrange-v-graucob.php >.[Accessed on 2nd January
2019]
O'Sullivan, J. and Hilliard, J., 2016. The law of contract.Oxford University Press.
Poole, J., 2016. Textbook on contract law. Oxford University Press.
Schwarcz, S.L., 2015. Sovereign Debt Restructuring: A Model-Law Approach. Journal of
Globalization and Development, 6(2), pp.343-385.
There is automatic incorporation of terms in a signed document 2018.Online. Available
through <https://www.lawteacher.net/free-law-essays/contract-law/there-is-automatic-
incorporation-of-terms-in-a-signed-document-contract-law-essay.php>.[Accessed on 2nd
January 2019]
Willett, C., 2016. Fairness in consumer contracts: the case of unfair terms. Routledge.
YUSOFF M., 2014. IMPLIED TERMS IN THE CONTRACT OF SALE OF GOODS.PDF.
Available through < https://core.ac.uk/download/pdf/146495658.pdf>. [Accessible on 2nd
2019]