Durham BA: Contract Law Foundations Exam Paper

Amelia owns a vintage bookshop and places an advertisement in the local newspaper stating: 'Rare first edition novels for sale. I will pay £500 to anyone who brings me a first edition copy of 'To Kill a Mockingbird' in excellent condition by Friday 5pm.' Ben sees the advertisement on Tuesday and immediately begins searching for the book. On Wednesday, Amelia posts a notice in her shop window saying 'Previous newspaper offer withdrawn.' Ben does not see this notice and continues his search. On Thursday, Ben finds the book at an auction, purchases it for £300, and takes it to Amelia's shop on Friday at 4pm. The book is in excellent condition. Amelia refuses to pay, claiming she withdrew the offer. Charlie, who saw both the original advertisement and the withdrawal notice, also brings a first edition copy on Friday at 3pm, arguing he is entitled to payment as Ben's acceptance was invalid. Advise Ben and Charlie on their contractual positions.

"The doctrine of consideration remains an anachronistic barrier to contractual justice, serving no useful purpose in modern commercial relationships." Critically evaluate this statement, considering whether the doctrine of consideration should be abolished or reformed in English contract law.

David runs a construction company and enters into a written contract with Elena to build an extension to her house for £50,000, to be completed by 31st December. The contract contains a clause stating: 'The contractor shall not be liable for any delays caused by adverse weather conditions or material shortages.' In October, David discovers that building materials have increased in price by 40% due to supply chain issues. He tells Elena that he cannot complete the work unless she agrees to pay an additional £15,000. Elena reluctantly agrees as she needs the extension completed for her daughter's wedding in January. David completes the work on time, but Elena now refuses to pay the additional £15,000, arguing that she was under duress and that the exclusion clause covers material price increases. Separately, David's contract with his cement supplier, Frank, contains a clause stating: 'Any disputes arising from this contract shall be resolved through binding arbitration.' When Frank delivers defective cement causing delays, David wishes to sue in court rather than use arbitration. Advise David on both issues.

"The courts have developed the doctrine of frustration too narrowly, failing to provide adequate relief for parties whose contractual obligations have become radically different from those originally undertaken due to unforeseen circumstances." Critically assess this statement with reference to recent developments including the impact of the COVID-19 pandemic on contractual obligations.