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Question: CONTRACT 1 ASSIGNMENT 1

TASK 1 - Mrs. Turner has decided to start her own business running a private day nursery. It is necessary for her to find appropriate premises. She sees a detached house, which would be appropriate, on the market for £200.000. After having viewed the property she decides to make a bid for the property for £150.000. The sellers state clearly however that they will only accept £180.000. Mrs. Turner then sees another property on the market for £250.000. She offers the asking price for this and it is accepted 'subject to contract.' However, a week later the sellers of the first property contact Mrs. Turner again stating that they have reconsidered and are now happy to accept her bid for £150.000.

Your supervisor has requested that you research the relevant issues and compile a report for
her attention which, outlines your findings.

TASK 2 Mrs. Turner has now purchased a suitable property and is now purchasing the necessary items required to run her nursery. She looks on a web-site and sees cots and
highchairs advertised for sale by a company named Babies R Us. A discount was available
when items were bought on bulk. Mrs. Turner e-mailed Babies R Us, on the 1st October 2003,
requesting twenty cots and twenty high chairs, requesting a reply by the 21st November 2003. She received a reply by post, confirming the order, on the 1st December 2003. This was postmarked 20th November. However, on the 30th November, Mrs. Turner had assumed that Babies R Us were unlikely to reply and therefore, entered into a contract with a rival company.

Mrs. Turner has made an appointment to see you to gain advice relating to the above problem.
Equally, she would appreciate some advice relating to the formation of contracts by e-mail.

TASK 3 - Mrs. Turner's nursery has now opened and has recruited well. She is concerned as to the different types of liabilities, which she may be affected by during the course of her business and would appreciate it if you could write to her regarding this. Explain the different types of liabilities and along with examples.

Answer: To establish whether or not Mrs Turner has entered into two contracts first off all we have to look at what makes a contract and what type of offer was made to her and whether or not she accepted it.
A contract is an agreement that is legally enforceable at law, whoever breaches the contract
can be sued or monetary compensation or be force to carry out the contract. For contract to be binding there must be offer, acceptance, consideration and intention to create a legal
relationship. If any of the above is missing, then there is no contract to speak of.
Offer and acceptance – the general rule is offer plus acceptance equals contract. The price
offered must be the price agreed.
The first property there was no acceptance from Mrs Turner, which means theirs no contact.
Intention to create a legal relationship – an offer must have an intention from both parties to be legally bound...(short extract)

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  • Subject: Law
  • Course: Contract Law
  • Level: Degree
  • Year: 1st
  • Mark: 86%
  • Words: 3247
  • Date submitted: April 18, 2009
  • Date written: December, 2007
  • References: Yes
  • Document type: Essay*
  • Essay ID: 1445

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