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Question: CONTRACT LAW CASE STUDY 2
ASSIGNMENT 1
Task one

A band called 'The Illusionists' are performing their first UK tour. They have decided to
use Rochford Concert Hall (RCH), a newly constructed venue for their first night.
Tabby, the main singer was informed by the manager that the hall would hold 2500 people and that the acoustics were suitable for their performance and that they should have no problems. However the managers didn't mention the fact that due to licensing matters, the concert had to come to an end by 11.00 p.m.

The members of the band signed the contract of hire for the venue, and began to sell the
tickets. They were pleased to hear that all 2500 tickets were sold very quickly.
However, on the night of the concert, only 1800 were admitted onto the premises on the
instructions of the local police due to health and safety reasons. The police also informed
the band that even though the tickets displayed the finishing time of the concert as 1 .a.m,
the licence of the venue only entitled them to be open until 11.00 p.m.

This setback resulted in 700 people demanding their money back due to not being
allowed entry on the night and a large percentage asking for some reimbursement as
the concert finished earlier than had been advertised on the tickets.

Tabby and the other members of the band are seeking advice from the firm. You have
been instructed to write a letter to 'The Illusionists' on the following issues.

a) Whether there was a duty to disclose information related to the licence of the
premises?
b) Did the manager's comments amount to misrepresentation?
c) Are there any remedies available to the band?

Task two
Ahmed owns a gallery. He felt that the gallery needed a makeover and decided to
refurbish. In order to do this he went to see Catherine, a local antiques dealer. He
shared his ideas for the gallery with Catherine and informed her that if possible he was
looking for some eighteenth century chairs by the 'Goya Brothers'.

Catherine showed him a variety of furniture and he saw some chairs which looked
identical to those he was after. He told Catherine that he believed these were the
chairs and would like to buy them. Catherine didn't say anything but was aware that
they were not genuine. However she sold them to him nonetheless.

Due to the refurbishment, Ahmed has just had the contents of the gallery re-valued
for insurance purposes, but discovers that the chairs are very good copies and is
advised to insure them for £50 each rather than the £2000 each he believed them to
be worth.

He is disappointed and has asked the firm for some advice. He is hoping to return the
chairs and have his money refunded.

The senior partner has asked you to write a report on the following issues.
a) Whether there is an operative mistake?

b) Would it have made any difference if Catherine was unaware of his mistake
and also believed that they were the original chairs?

What effect, if any would Ahmed's mistake have on the contract?

Answer: TASK 1
Regarding: Mistake
Introduction:
Below I will advise Ahmed in order to assist him on his current circumstances.
Findings:
Vitiating factors
Even where a contract meets the four requirements it may not be binding if at the time
the contract was made their where certain factors were present which means there was
no genuine consent. They are known as vitiating factors. If there is a vitiating factor
the contract will become void/voidable as a result of this. If the contract is void then
there was never a contract in the first place, so nether party can enforce the contract
and if it is voidable then the innocent party can choose whether or not they want to
carry on the contract. The reason why vitiating factors undermine a contract is that
they all in some way render invalid the parties consent to the agreement. Vitiating
factors include the following
1. Misrepresentat...(short extract)

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  • Subject: Law
  • Course: Contract Law
  • Level: Degree
  • Year: 2nd/3rd
  • Mark: 81%
  • Words: 3629
  • Date submitted: April 18, 2009
  • Date written: February, 2008
  • References: Yes
  • Document type: Essay*
  • Essay ID: 1447

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