Durham BA: Contract Law Paper

Arabella owns a vintage bookshop. On Monday, she places a sign in her window reading: 'First edition of Pride and Prejudice — £5,000. Only one available.' Bernard enters the shop and says, 'I accept your offer — here is my cheque.' Arabella refuses to sell, saying the sign was merely an invitation to treat. Later that day, Arabella emails Charles, offering to sell him the same book for £4,500, adding 'This offer is open until Friday at noon.' On Thursday morning, Arabella emails Charles revoking the offer. Charles receives the revocation email on Thursday at 2pm but, having not yet checked his email, had already posted an acceptance letter at 1pm on Thursday. Advise the parties as to whether any binding contracts have been formed. [25 marks]

Priya is a self-employed graphic designer. She enters into a written contract with Quantum Ltd to design a new corporate logo for £10,000, to be delivered within six weeks. The contract contains a clause stating: 'In no event shall Quantum Ltd be liable for any indirect or consequential losses howsoever arising.' Priya delivers the logo two weeks late due to a server crash. As a result, Quantum Ltd: (i) loses a £50,000 corporate rebranding contract with a major client that had been contingent on receiving the new logo by the deadline; and (ii) incurs £2,000 in overtime costs to its in-house team who had to manage client communications during the delay. Quantum Ltd refuses to pay Priya the £10,000, arguing her breach justifies withholding all payment. Priya claims the exclusion clause is unfair. Advise Priya on her potential claims and Quantum Ltd's defences. [25 marks]

Dominic is a 70-year-old retired teacher with no business experience. His nephew, Marcus, a financial adviser, persuades him to invest his life savings of £200,000 into Marcus's new property development company, telling him: 'You will at least double your money within two years — this is an absolute certainty.' Marcus also fails to disclose that the company is subject to an ongoing regulatory investigation. The investment fails and Dominic loses all his money. Separately, Marcus had told Dominic that if Dominic withdrew his savings early (incurring a £10,000 bank penalty), he would personally reimburse the penalty 'no matter what'. Marcus now refuses to pay the £10,000. Advise Dominic as to any remedies he may have against Marcus in contract and equity. [25 marks]

'The doctrine of consideration remains the most technical and unsatisfactory doctrine in the law of contract. Its insistence on the bargain element serves no useful purpose and should be abolished in favour of a reliance-based approach.' Critically evaluate this statement with reference to decided cases and academic debate. [25 marks]

'English law has historically been reluctant to impose a general duty of good faith in contract. In light of recent judicial developments, critically assess whether this position remains defensible.' [25 marks]