Contract Law: Advice on Jane, George, and Alan's Agreements

This assignment provides a comprehensive analysis of a contract law case involving Jane, George, and Alan. It explores the legal implications of agreements related to shop refurbishment and loan arrangements. The document examines key elements of contract law, including offer, acceptance, consideration, and the potential for undue influence. It delves into the validity of contracts, potential breaches, and the circumstances under which a party may be bound or avoid a contract. The analysis considers different scenarios, such as Jane's agreement with George for shop refurbishment and Alan's use of his house as security for a business loan. The report applies relevant case law to support its arguments and provides legal advice to the parties involved, arguing both sides of the issues presented in the problem set. It concludes with a determination of whether contracts are valid and whether the parties have grounds to avoid or enforce them, in line with the assignment brief.

CONTRACT LAW

Contents
INTRODUCTION.................................................................................................................................3
CONTRACT LAW...............................................................................................................................3
ADVICE A).......................................................................................................................................3
ADVICE B).......................................................................................................................................5
CONCLUSION.....................................................................................................................................7

INTRODUCTION
Contract law refers to the body of law which is mainly imposed during the time of
entering into the agreement which is made between the parties. In respect of making the
contract valid, parties are bound to follow all the essential elements which is mentioned in the
contract such as their must be offer and acceptances of particular things and also there must
be promise regarding exchanging the consideration to make the contract valid1. Thus, in this
report, the discussion and matters is presented by understanding the point of view of both the
parties regarding the necessity of entering into the contract.
CONTRACT LAW
ADVICE A)
In case if the Jane enters into the contract with George
Issue: In this case the situation is raised, if Jane is bound to enter into the contract with
George in respect of not disclosing the truth to his wife Evelyn regarding the affairs with the
Alan. As the contract is made regarding refurbishing and re-equipping the shop. Thus, in this
case the situation is examined regarding carrying legally bound to follow the contract once
they agree to perform it and complete it within the time period of three months.
Rules: Under the Contract act, 1990, it is stated to make the contract valid, parties must fulfill
the following terms as their must be offer of some valuable things to one party and also
acceptances of such offer2. Parties must be competent to Handel the contract and also if they
mutually agree, than they are legally bound by the order of the court.
This is supported with the case of D&C Builders V Rees [1966] 2 WLR 28 Court of
Appeal as in this case the deal is made between the parties regarding constructing the
building. As per the promise made by the party regarding paying the full amount, they made
the half amount due to facing financial crises3. Through this aspects, the decision raised in
favor of Rees regarding entering into the valid contract.
Application: By referring this case with the stipulated case, it is stated that If Jane enters into
the agreement with the George, this indicates that he is legally bound to follow all the terms
and condition which is mentioned in the contract4. Similar to this case study, Rees enters into
the contract with the Builders in respect of giving order to accomplished the building but later
refuse to perform the contract. Thus, it indicates that the contract is valid and also specific
performances are undertaken to complete the contract.
1 Arvind, Thiruvallore Thattai. Contract law. Oxford University Press. 2017.
2 Beale, Hugh, Bénédicte Fauvarque-Cosson, Jacobien Rutgers, and Stefan
Vogenauer. Cases, materials and text on contract law. Bloomsbury Publishing, 2019.
3 D & C Builders v Rees [1966] 2 QB 617. 2020. [Online]. Available through: <
https://www.lawteacher.net/cases/d-c-builders-v-rees.php>.
4 Austen-Baker, Richard. Implied terms in English contract law. Edward Elgar
Publishing, 2017.Cherry, Miriam A. "The Sharing Economy and the Edges of
Contract Law: Comparing US and UK Approaches." Geo. Wash. L. Rev. 85 (2017):
1804..

Conclusion: From this above study, the report concludes the matters relating to examining the
elements which is necessary to make the contract valid. In this case, both the parties are
competent to handle the contract and also make the contract valid. It is also stated that there is
no breach in any of the terms which results in making the contract voidable.
In case if Jane refuse to enter into the contract with George
Issue: In this case, the issue is raised regarding forcing Jane to enter into the contract with the
George as George forces Jane in respect of telling the truth to wife about his affairs. This
results in making the contract valid, as in this the mutual agreement is not examined between
the partners in respect of entering into the contract.
Rules: In case of under influences, if any contract is entered under the pressure or mental
stress, than it results to under influences on entering into the contract. The major things which
is reflected under this aspects which is relating to the facing issues of one party which is not
gaining any interest through entering into the contract5. It is further classified into three
classes such as Class 1 is related to actual matters which reflected the under influences, Class
2a is presumed under influences and Class 2b is also presumed under influences which is
different from Class 2a.
It is supported with the case of Bank of credit and Commerce International V Aboody
[1990] 1 QB 923 Court of Appeal, as in this case the issues is raised regarding signing the
document without the willingness of taking loans in respect of showing the house papers. But
they unable to pay the debts of the banks and results in seize of the papers6. The claim is
raised by wife against his husband in respect of signing the paper under the influences of
recovering the debts.
Application: By applying the case with the present scenario which is stated that similar to this
case the matter reflects the aspects of the under influences. As likely Aboody is forced by her
husband in respect of signing the paper, Jane is also forced to enter into the contract which is
not in their interest and also she was forced to enter into the contract without their will7. Thus,
the contract is not valid in this aspects, as per the decision given by the court regarding not
carrying any interest in respect of entering into the contract.
Conclusion: From this above study, it is concluded that it results in making the contract void
as it not carried the interest of the parties regarding entering into the contract. As if the
contract is entered on the bases of under influences, than the court order the parties to
repudiate the contract or reject to perform the contract by the set terms. As the matters is not
covered under the manifest disadvantages, as in this the impact upon the person who
5 Clarke, Philip H. "Curbing the Abuse of a Dominant Position Through Unfair
Contract Terms Legislation: Australian and UK Comparison." In The Constitutional
Dimension of Contract Law, pp. 185-216. Springer, Cham, 2017.
6 B A N K O F C R E D I T A N D C O M M E R C E I N T E R N A T I O N A L S A V
A B O O D Y : C A 1 9 8 9 . 2020. [Online]. Available through: <
https://swarb.co.uk/bank-of-credit-and-commerce-international-sa-v-aboody-ca-
1989/>.
7 DiMatteo, Larry A., and Martin Hogg, eds. Comparative Contract Law: British and
American Perspectives. Oxford University Press, 2016.

forcefully enters into the contract and also facing losses regarding not managing the contract
in right manner.
ADVICE B)
If Alan can avoid the contract for the use of his house as security
Issue: In this matter, the deal is made between the Alan and Jane’s regarding taking business
loan by keeping his house as security and the deal is made on promise regarding offering the
share in the profits of the business. As before the deal is finalized, Alan also discussed the
things with the Jane solicitors who is also failed to provide the detailed information about
such dealing. Now the issues is raised whether Alan can avoid the contract and also restricts
the Jane in respect of using his house as security.
Rules: Under the contract act, it refers to the terms of agreement which is made between the
parties in respect of entering into the valid agreement8. As in agreement, it is necessary that
one party offers some valuable things to other party and other party accepts such offer. But
the contract is not valid or void in case if offer is made but acceptances is not there.
In case of invitation to treat, if the invitation is made in respect of accepting the offer
and in return more profits is gained. Then, in such case, the contract is still not valid, if the
acceptances is made by the opposite party regarding accepting the offer. This is explained
with the case of Spencer V Harding Law Rep. 5 C. P. 561, as in this case the issues is raised
regarding entering into the tender and also offer is made in respect of getting the stock in
trade belonging to Eilbeck & Co. Instead of getting the highest tender from the seller, the
defendant refused to sell the goods9. The decision is made by the courts that the invitation of
offer is made but not acceptance is given to accept the highest tender or not.
Application: By undertaking the decision with the stipulated case, it is stated that the Alan
carry the same right which is carried by Spencer in respect of avoiding the contract if they
feel that such offer results in affecting their rights10. As no such approval is made by Alan
regarding using the house for the security of loan as the chances of risk is higher and also the
solicitors not resolve the issues in right way. Another reason of avoiding the contract is that,
the property is owned by someone else and thus without their prior permission, Alan not
carries any right to take loan in respect of giving the papers of property.
Conclusion: By this aspects, the matter easily concluded in respect of avoiding the contract
on the following bases which is sated above and also it not results in carrying any breach in
any of the terms. As no contract is valid, if it not fulfills the essential elements of the contract
such as offer and acceptance between the parties. Thus, Alan can avoid the contract on the
stated terms and condition which is mentioned under the contract act.
If Alan not avoid the contract and allows Jane to use his house
8 Lim, Ernest, and Cora Chan. "Problems with Wednesbury unreasonableness in
contract law: lessons from public law." (2018).
9 Spencer v Harding [1869]. 2020. [Online]. Available through:
<https://webstroke.co.uk/law/cases/spencer-v-harding-1869>.
10 Martin, Samuel. "The Evolution of Good Faith in Western Contract Law." Available
at SSRN 3177520 (2018).

Issue: If the offers is made by Jane regarding using the house as security for taking loan and
also Alan allows the Jane to use it. Thus, results in not avoiding the contract. But the issue in
this case is raised regarding not fulfilling any of the condition through which the Alan entered
into the contract as Jane divorce his wife and later marry him.
Rules: As under the contract act, it is stated that when one party feels that by entering into
such contract which results in bringing profits, they enter into the contract with the other
party and accepts their offer11. This resulting making the contract valid as both the parties
mutually decide to formulate the contract through the written format. In respect of breach
committed in any of the terms which is stated in the contract, the other person liable to pay
damages to the plaintiff to whom breach is committed12.
This is supported with the case of Edwards V skyways [1964] 1 WLR 349, which
stated that Edwards agree to withdrawal his contribution from the company pension in
respect of getting better contribution through the ex gratia payment. But after company faces
the difficulty and they went back from their promise13.
Application: By applying this case in the respective case study, it is stated the chances of
getting loss is less but Alan can enjoy the benefits in respect of profits through the shares in
the business. If Jane’s not fulfill this condition, it results in breach but not condition regarding
getting marries is written in contract14. Thus, the chances of repudiating the contract is not
useful. It is indicated that contract is mainly entered in respect of gaining benefits through
dealing in any activity and thus in respect of entering into the contract or accepting the offer
of taking loan on keeping the house as security results in bringing benefits in their business15.
Conclusion: By this above study, the matters concludes in respect of performing the contract
by the stated terms and also in case of putting the house of security for not facing any issues
resulting in gaining benefits to Alan. Thus, the chances of avoiding the contract is not valid as
the benefits is enjoyed by both the parties.
CONCLUSION
From the above study, the report concludes the matters relating to advising the first
case which stated that the contract which is made under influences is not valid. As in this case
both the parties are competent to handle the contact and also such contract is not affecting the
rights of any parties. Thus, the matter related to manifest is not arises in this respective case.
11 McDermott, Paul A. Contract law. Bloomsbury Publishing, 2017.
12 Smits, Jan M., ed. Contract law: a comparative introduction. Edward Elgar
Publishing, 2017.Graziano, Thomas Kadner. Comparative contract law: cases,
materials and exercises. Edward Elgar Publishing. 2019.
13 Edwards v Skyways [1969] 1 WLR 349. 2020. [Online]. Available through:
<https://www.lawteacher.net/cases/edwards-v-skyways.php>.
14 Phang, Andrew. "The intractable problems of illegality and public policy in the law
of contract–a comparative perspective." In Essays in Memory of Professor Jill Poole.
pp. 178-234. Informa Law from Routledge. 2018.
15 POOLE, JILL DEVENNEY, James Devenney, and Adam Shaw-Mellors. Contract
Law Concentrate: Law Revision and Study Guide. Oxford University Press. 2019.

But still court provides the liberty to Jane in respect of repudiating the contract regarding not
carrying any willingness to enter into such contract. But also give option if such deal is not
affecting their rights or also not facing any such losses by entering into such contract. If the
judgment which is raised in Second advice is relating to understanding the benefits of Alan in
respect of getting the share of profits in the business. As Jane’s business is carrying the
renewed brand image and thus the chances of profit is higher. Thus, in respect of avoiding the
offer through the chances of facing less barriers results in enjoying benefits which is incurred
through keeping the house as security.