Aspects of Contract and Negligence for Business

You are required to fulfil the following four tasks. Each answer must address the task, and provide analysis and application with reference to relevant case law and statutory provisions. The total word limit is 3,500 words; your assignment should be at least 3,000 words in length.

Task 1

“Techno Products” is a small business that specialises in selling computers at discounted prices.

“Techno Products” has seen its profits decline and decides to run an advertising campaign to attract new customers. As part of this campaign it pays for a newspaper advertisement that states: “The first ten customers to enter our shop on the 12 September 2013 will be eligible to purchase one of our highest specification computers, which normally retail at £3000.00, for £1.00”.

Peter reads the advertisement and waits outside “Techno Products” shop all night on the 11 September 2013 to ensure that he is one of the first ten customers on the morning of the 12 September 2013. He is in fact the first customer to enter the shop on the morning on the 12 September 2013.

When Peter tells the sales assistant that he wishes to purchase one of “Techno Products” highest specification computers for £1.00 he is told that the advertisement was not meant seriously and nobody of “sound mind” would think that they could purchase a computer for £1.00. He is informed that if he wishes to purchase the computer he must pay the “market rate” of £3000.00.

Peter has sought your advice as to whether he can force “Techno Products” to sell him the computer for £1.00. In giving advice you must focus on the law relating to offer, acceptance and consideration.

Task 2

Jack wishes to purchase a new mobile telephone. He knows little about mobile telephones and decides to go to a local shop, “Telephones Are Us”, to get some information and possibly purchase a telephone. He finds the sales assistant at “Telephones Are Us” to be very helpful and decides to purchase a telephone on the basis of a 12 month contract. The sales assistant informs him that he must sign a standard form contract. He signs the contract in the shop without reading it.

When Jack later tries to use the telephone he finds that it does not work. He takes the telephone back  to “Telephones Are Us” and asks for a replacement but is informed that he is liable to pay for the cost of repairing the telephone and even if he chooses not to have the telephone repaired he is bound for the 12 month period of the contract that he signed. The sales assistant points out clause xiii of the contract  that he signed, which states:

“Telephones  Are  Us  accepts  no  liability  for  the  replacement  or  repair  of  faulty  products.  In all circumstances the customer must bear the cost of either replacing or repairing any faulty product and   is bound by the terms of this contract for its full duration”.

Jack has sought your advice as to whether he can force “Telephones Are Us” to replace/repair the telephone and whether he is bound by the 12 month contract. In giving advice you must focus on the relevant statutory provisions protecting consumers who purchase goods from businesses.

Task 3

Patricia was a passenger on “Safe and Steady Trains”, a train company that has recently gone into liquidation. The train she was on was involved in a crash with another train. She suffered a broken leg.

The crash was caused because the driver of Patricia’s train fell asleep.

Patricia wishes to bring a claim in negligence against the train driver. Advise her as to what she must establish to bring such a claim and her chances of success.

Task 4

Paula was invited to a job interview with “Pushing and Pulling Ltd.”. On entering the building, which   was solely occupied but not owned by “Pushing and Pulling Ltd.”, for her interview she tripped over a cable that was running across the reception area at floor level. There were no warning notices advising visitors to the building to take care with regard to the exposed cable.

Paula has sought your advice as to the possibility of bringing a claim against “Pushing and Pulling Ltd.”

under occupiers’ liability legislation. However, she is worried because she is taking medication for a virus and the medication should only be taken with food; she took the medicine on the day of the interview without food and feels this may have contributed to her falling over the cable.

Advise Paula as to any action that can be brought under legislation relating to occupiers’ liability and whether and damages award might be reduced because of any possible contributory negligence on   her part.

LO1. Understand the essential elements of a valid contract in a business context

Explain the importance of the essential elements required for the formation of a valid contract.

Discuss the impact of different types of contract.

Analyse terms in contracts with reference to their meaning and effect.

LO2. Be able to apply the elements of a contract in business situations

Apply the elements of contract in given business scenarios

Apply the law on terms in different contracts

Evaluate the effect of different terms in given contracts

 Check the most relevant solution of Aspects of Contract and Negligence in Business

LO3. Understand principles of liability in negligence in business activities

Contrast liability in tort with contractual liability

Explain the nature of liability in negligence

Explain how a business can be vicariously liable

LO4. Be able to apply principles of liability in negligence in business situations

Apply the elements of the tort of negligence and defences in different business situations

Apply the elements of vicarious liability in given business situations.