G279 ctl aug21 answer booklet final

ANSWER BOOKLET

GDL: CONTRACT LAW AUGUST 21 EXAM

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CONTRACT LAW

INSTRUCTIONS TO CANDIDATES

Where questions are sub-divided, candidates should not expect the sub-divisions necessarily to be of equal weight.

You must answer THREE questions out of SIX.

You may refer to your GDL Statutory Extracts.

There is a maximum word limit of 6,000. Words in excess of this limit will not be marked.

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QUESTION 1

Jenny saw an advertisement for an auction of antique clocks and decided to attend.  She was especially interested in Lot 24 comprising a Rolling Moon Grandfather Clock in a figured mahogany case with a brass arch dial (“Lot 24”). (A grandfather clock is a tall free-standing wooden clock with chimes.)  To help fund her proposed purchase she decided to sell her granddaughter clock (which is like a grandfather clock, but smaller).

She put a notice on the advertising board at her local supermarket – See Document A.

A week later, having had no response to the advert, she wrote to a friend, Kate, who in the past had expressed some interest in buying the granddaughter clock.  Jenny told her that she was prepared to sell the clock to her for £600.  She added that if Kate wanted to buy the clock she must let Jenny know as soon as possible.

On the same day Kate received the letter, she posted a reply saying, “I’ll buy the clock for £600. As you have an estate car with plenty of boot space, would you be able to deliver it to me? Otherwise I will need to borrow my Dad’s van.”  Kate’s letter was lost in the post and Jenny did not receive it.

The next morning, a mutual friend, Stuart, told Jenny that he had seen Kate and that she had said she was buying Jenny’s granddaughter clock.  Jenny immediately telephoned Kate and left a voicemail message saying that she had just accepted an offer from Bharat of £630 for the clock and that it was no longer for sale.

That afternoon Jenny attended the auction and made a bid of £1,000 for Lot 24.  There was no higher bid, but the auctioneer refused to sell to Jenny (as he knew Lot 24 was worth about £4,000).  Jenny was disappointed as the auctioneer’s catalogue had stated that Lots 20-30 were to be sold without reserve.

The following day when Damien was shopping at the supermarket, he saw Jenny’s advert.  He telephoned Jenny and told her that he wanted to buy the granddaughter clock for £650.  Jenny told Damien that the clock was no longer for sale.  On the same day, Kate telephoned and said she had been on holiday for a few days and had only just heard Jenny’s message. She said as far as she was concerned they had a deal and wanted to know when Jenny would be delivering the clock, or if she needed to collect it.

Both Kate and Damien are claiming they have a contract with Jenny for the clock.

Advise Jenny explaining her legal position in relation to Damien and Kate and whether she has any claim in respect of Lot 24.