LSE: Contract Law Paper

Arabella runs a specialist antiquarian bookshop. On 1 March she places a notice in her window: 'First edition of Keats's 1820 Poems — £8,000 — available to the right buyer.' Benedict visits the shop on 3 March and states, 'I will pay your asking price; I am a serious collector.' Arabella replies, 'I will think it over and let you know by Friday.' On Thursday evening Arabella telephones Cressida, a museum curator, and agrees to sell the book to her for £9,500. On Friday morning Benedict posts a letter accepting 'your offer to sell for £8,000.' Arabella receives the letter on Saturday. Advise the parties as to whether any binding contract has been formed, paying particular attention to the rules on offer, acceptance and revocation.

Delphine is a property developer. She engages Edgar, a builder, to construct a warehouse for £500,000. Midway through the project, Edgar tells Delphine he will cease work unless she pays an additional £80,000, citing increased steel prices. Delphine, who has a critical commercial lease commencing in eight weeks, agrees in writing to pay the extra sum. The warehouse is completed on time. Delphine now refuses to pay the £80,000, arguing there was no consideration for her promise. Edgar argues that the practical benefit Delphine received suffices. Separately, Delphine had promised her site foreman, Fatima, that if the project finished on time, she would pay Fatima a bonus of £5,000 'as a thank you.' The project finishes on time but Delphine refuses to pay. Advise Edgar and Fatima.

Gemma books a two-week luxury holiday in Tuscany with Holiday Horizons Ltd for £6,000. The standard terms and conditions, printed on the back of the booking form she signs, include: Clause 7 — 'The Company shall not be liable for any failure to provide services as described howsoever caused.' Clause 8 — 'In the event of any complaint, compensation shall not exceed £200.' On arrival in Tuscany, Gemma discovers that the villa is a budget guesthouse, the promised private pool does not exist, and the transfers described in the brochure are not provided. Gemma has to book a hotel for three nights at £400 per night and hire a car at £700. Advise Gemma as to: (i) whether Clauses 7 and 8 are incorporated into her contract; (ii) whether they satisfy the requirements of the Unfair Contract Terms Act 1977 and the Consumer Rights Act 2015; and (iii) the remedies available to her.

Critically evaluate the extent to which English law has developed a coherent doctrine of good faith in contract law. Should English courts adopt a general duty of good faith in contractual performance, as seen in many civilian systems?

Critically assess the law relating to remoteness of damage in contract, with particular reference to the rule in Hadley v Baxendale and its subsequent development by the House of Lords and Supreme Court. Is the current state of the law satisfactory?