Reference no: EM132880394 , Length: word count:2400

LAA108 Contract Law - Swansea University

Question 1:

Jack, a builder, requires machinery for a building project. Jack negotiates with Owen, a supplier of building machinery, to hire the required equipment including a crane. During the negotiations, Owen states that he can supply all Jack's building machinery needs for the project including the AB250 crane which can carry a weight of up to four tonnes. Owen has checked the tonnage capacity of the AB250 both in the crane's manual stored in his office and in the online register. Both confirm that the AB250 is suitable for Jack's requirements. Jack's surveyor has also quickly checked the manual and sees that it is suitable. A week before the contract is agreed Owen receives an email from the manufacturer with the subject heading ‘AB250 tonnage: error in manual's tonnage capacity'. He does not read the email. This email would have told Owen that the carrying capacity is only two tonnes.

Owen offers Jack a 10% discount on the hire which pleases Jack and he decides to hire the machinery from Owen for a sum of £10,000. However, when using the AB250 to lift three tonne concrete blocks, the crane is unable to support the weight and drops one of the concrete blocks, which crashes into the roof of the building, destroying a specially commissioned stained-glass panel worth £1 million. Jack has to halt his building project while he waits for a new glass panel to be created and delivered. As a result of the incident, Jack is extremely late in completing the project and makes a loss of £1,000,000 on the glass plus a further loss of £200,000. His delay also means that the main contractor does not hire him for a subsequent project. This would have resulted in a £40,000 profit for Jack.

Jack discovers that the AB250 only has a weight capacity of two tonnes and wishes to sue Owen.

Advise Jack on whether he may be able to sue Owen for misrepresentation or for a possible breach of contract. Where possible, answers should specify the amount of damages (if any) which could be awarded.

Question 2:

Frustration of a contract occurs when an event subsequent to the formation of the contract renders its performance impossible, illegal, or brings about such a radical change in the circumstances that the contract becomes something quite different from that which was originally agreed. The doctrine has theoretical bases and practical application.

Critically evaluate how the doctrine has evolved to deal with potentially frustrating events, leading up to the present day of 2021. In doing this, critically evaluate the extent to which the doctrine has increased in legal significance and how commercial parties have increasingly sought to rely on the doctrine to safeguard their contractual interests. Carry out this evaluation with reference to relevant legal authorities, such as cases, statute, and academic commentary.

Question 3:

Economic duress has only been recognised by the law in relatively recent years. Nevertheless, it is a very important concept and it is vital to determine its scope. This is something which the courts are still doing.

With reference to relevant legal authorities critically discuss the above statement.

Using the OSCOLA referencing system

Attachment:- Contract Law.rar