On Friday 10 December the following notice is placed in the window of Ann's art gallery: 'Two copies of a very rare Blake print – £15,000 each'.

Chas and Dave are very keen to acquire the prints but think that the price is too high. They each offer Ann £12,000 for a copy but she refuses to sell the prints at that price, although she says she will accept £13,500. She also says she will keep her offer to them open until 12 o'clock on the following Monday, 13 December, if they each pay her £100. Chas and Dave agree and each hands over £100. On the Saturday before the deadline Chas and Dave have to leave the country on business but before they do so each posts a letter stating that he agrees to buy one of the prints at the agreed price of £13,500. Chas's letter arrives at 9.30 on the Monday morning but Dave's letter is delayed and arrives on the morning of Tuesday 14 December.

REQUIREMENT

Which TWO of the following statements concerning offers are correct?

On Friday 10 December the following notice is placed in the window of Ann's art gallery: 'Two copies of a very rare Blake print – £15,000 each'.

Chas and Dave are very keen to acquire the prints but think that the price is too high. They each offer Ann £12,000 for a copy but she refuses to sell the prints at that price, although she says she will accept £13,500. She also says she will keep her offer to them open until 12 o'clock on the following Monday, 13 December, if they each pay her £100. Chas and Dave agree and each hands over £100. On the Saturday before the deadline Chas and Dave have to leave the country on business but before they do so each posts a letter stating that he agrees to buy one of the prints at the agreed price of £13,500. Chas's letter arrives at 9.30 on the Monday morning but Dave's letter is delayed and arrives on the morning of Tuesday 14 December.

REQUIREMENT

Which of the following correctly describes the nature of the notice in Ann's window?

On Friday 10 December the following notice is placed in the window of Ann's art gallery: 'Two copies of a very rare Blake print – £15,000 each'.

Chas and Dave are very keen to acquire the prints but think that the price is too high. They each offer Ann £12,000 for a copy but she refuses to sell the prints at that price, although she says she will accept £13,500. She also says she will keep her offer to them open until 12 o'clock on the following Monday, 13 December, if they each pay her £100. Chas and Dave agree and each hands over £100. On the Saturday before the deadline Chas and Dave have to leave the country on business but before they do so each posts a letter stating that he agrees to buy one of the prints at the agreed price of £13,500. Chas's letter arrives at 9.30 on the Monday morning but Dave's letter is delayed and arrives on the morning of Tuesday 14 December.

REQUIREMENT

Which of the following parties does Ann have a binding contract with?

Ace Ltd placed the following notice in the January edition of its company journal to request help in solving a problem with one of its computer products – the Brag: '£10,000 reward to any employee who can design a solution to the Brag problem before 1 April'.

Cid, who was married to an employee of Ace Ltd, read the journal and thought that he could solve the problem, so started work on it. Ed, employed by Ace Ltd, also saw the advert and decided to work on it. Ed solved the problem, but before he could notify Ace Ltd, the company decided to cancel the Brag product and placed a note in the March edition of its journal cancelling the reward.

REQUIREMENT

The offer of a reward creates which type of contract?

Ace Ltd placed the following notice in the January edition of its company journal to request help in solving a problem with one of its computer products – the Brag: '£10,000 reward to any employee who can design a solution to the Brag problem before 1 April'.

Cid, who was married to an employee of Ace Ltd, read the journal and thought that he could solve the problem, so started work on it. Ed, employed by Ace Ltd, also saw the advert and decided to work on it. Ed solved the problem, but before he could notify Ace Ltd, the company decided to cancel the Brag product and placed a note in the March edition of its journal cancelling the reward.

REQUIREMENT

Which of the following statements is correct?

Ace Ltd placed the following notice in the January edition of its company journal to request help in solving a problem with one of its computer products – the Brag: '£10,000 reward to any employee who can design a solution to the Brag problem before 1 April'.

Cid, who was married to an employee of Ace Ltd, read the journal and thought that he could solve the problem, so started work on it. Ed, employed by Ace Ltd, also saw the advert and decided to work on it. Ed solved the problem, but before he could notify Ace Ltd, the company decided to cancel the Brag product and placed a note in the March edition of its journal cancelling the reward.

REQUIREMENT

Which of the following statements is correct?

Zri operates a business as a designer of internet web pages for a variety of business clients. Unfortunately, he has had some difficulty in recovering his full fees from a number of clients as follows:

Ad, a self-employed car mechanic, without contacting Zri, simply sent him a cheque for half of his fees stating that he could not pay anymore and that the cheque was in full settlement of his outstanding debt. Zri rang Ad about this and reluctantly agreed to wave half the fees.

Bi, a newly qualified accountant, told Zri that although she could only raise the cash to pay half of the outstanding fees she would, as an alternative to paying the other half, do all of Zri's accountancy work for the coming year. Zri reluctantly agreed to this proposal.

Cas, a self-employed musician, told Zri that she could not pay any of the money she owed him. However, her father offered to pay Zri, but could only manage half of the total amount owed. Once again Zri reluctantly agreed to accept the father's payment of the reduced sum.

Dex, the owner of a nursery, told Zri that she could not afford to pay any of Zri's bill but that she would provide a week's childcare to Zri for free. Zri currently does not have any children.

REQUIREMENT

Which of the following correctly describes the principle of promissory estoppel?

Zri operates a business as a designer of internet web pages for a variety of business clients. Unfortunately, he has had some difficulty in recovering his full fees from a number of clients as follows:

Ad, a self-employed car mechanic, without contacting Zri, simply sent him a cheque for half of his fees stating that he could not pay anymore and that the cheque was in full settlement of his outstanding debt. Zri rang Ad about this and reluctantly agreed to wave half the fees.

Bi, a newly qualified accountant, told Zri that although she could only raise the cash to pay half of the outstanding fees she would, as an alternative to paying the other half, do all of Zri's accountancy work for the coming year. Zri reluctantly agreed to this proposal.

Cas, a self-employed musician, told Zri that she could not pay any of the money she owed him. However, her father offered to pay Zri, but could only manage half of the total amount owed. Once again Zri reluctantly agreed to accept the father's payment of the reduced sum.

Dex, the owner of a nursery, told Zri that she could not afford to pay any of Zri's bill but that she would provide a week's childcare to Zri for free. Zri currently does not have any children.

REQUIREMENT

From which of the following parties Zri can recover his outstanding amounts?

Andy's company operates a fleet of haulage trucks that transport goods to commercial depots and warehouses all around the country. Andy himself often works as a truck driver, delivering goods. At the depot of one of Andy's clients, Hazelwood Ltd, the following notice is in place.

'For commercial delivery use only. The use of these facilities is strictly at your own risk and Hazelwood Ltd accepts no liability whatsoever for any damage or injury sustained by either those using this facility or their vehicles or property, no matter how caused.'

Andy was aware of the notice, but had never paid much attention to it. However, one day, after delivering some goods to Hazelwood Ltd, he returned to his truck to find that it had been badly damaged by a towing vehicle driven by an employee of Hazelwood Ltd. Whilst on his way to the office to complain, he was hit by the same towing vehicle. As a result, not only was his truck severely damaged, but he suffered a broken leg and was off work for eight weeks.

Hazelwood Ltd has accepted that its employee was negligent on both counts but denies any liability, relying on the exclusion clause.

REQUIREMENT

Which TWO of the following are characteristics of valid exclusion clauses?

Andy's company operates a fleet of haulage trucks that transport goods to commercial depots and warehouses all around the country. Andy himself often works as a truck driver, delivering goods. At the depot of one of Andy's clients, Hazelwood Ltd, the following notice is in place.

'For commercial delivery use only. The use of these facilities is strictly at your own risk and Hazelwood Ltd accepts no liability whatsoever for any damage or injury sustained by either those using this facility or their vehicles or property, no matter how caused.'

Andy was aware of the notice, but had never paid much attention to it. However, one day, after delivering some goods to Hazelwood Ltd, he returned to his truck to find that it had been badly damaged by a towing vehicle driven by an employee of Hazelwood Ltd. Whilst on his way to the office to complain, he was hit by the same towing vehicle. As a result, not only was his truck severely damaged, but he suffered a broken leg and was off work for eight weeks.

Hazelwood Ltd has accepted that its employee was negligent on both counts but denies any liability, relying on the exclusion clause.

REQUIREMENT

In respect to which of the following will Andy receive damages from Hazelwood Ltd?

Roger regularly takes part in a sport that involves fighting with wooden sticks. He has been successful in many fights but recently took part in one in which he lost to Jack. The fight took place under the necessary safety regulations and was stopped before Roger was hurt too badly. However, soon after the fight, it was clear that he had received severe head injuries and he now has difficulty talking.

Lulu used a public toilet at her local train station. Unfortunately the lock was defective and she was stuck inside. In a hurry to escape, she attempted to climb out of the window (despite a warning notice not to do so) and fell to the ground outside, injuring her head.

REQUIREMENT

Which TWO of the following must a claimant prove to be owed a duty of care in a negligence claim?

Roger regularly takes part in a sport that involves fighting with wooden sticks. He has been successful in many fights but recently took part in one in which he lost to Jack. The fight took place under the necessary safety regulations and was stopped before Roger was hurt too badly. However, soon after the fight, it was clear that he had received severe head injuries and he now has difficulty talking.

Lulu used a public toilet at her local train station. Unfortunately the lock was defective and she was stuck inside. In a hurry to escape, she attempted to climb out of the window (despite a warning notice not to do so) and fell to the ground outside, injuring her head.

REQUIREMENT

Which of the following statements about Roger is correct?

Roger regularly takes part in a sport that involves fighting with wooden sticks. He has been successful in many fights but recently took part in one in which he lost to Jack. The fight took place under the necessary safety regulations and was stopped before Roger was hurt too badly. However, soon after the fight, it was clear that he had received severe head injuries and he now has difficulty talking.

Lulu used a public toilet at her local train station. Unfortunately the lock was defective and she was stuck inside. In a hurry to escape, she attempted to climb out of the window (despite a warning notice not to do so) and fell to the ground outside, injuring her head.

REQUIREMENT

Which of the following statements about Lulu is correct?