Contract Law: Exam Paper

[Name of the institutions]

Contract Law

Hank and Brian's Full and Frank's Case

Hank and Brian are friends from university who share a love of rugby and of eating cakes. When they stopped playing rugby, they kept eating cakes and their weight ballooned. Consequently, both are large men who struggle to find clothes which will fit them. They decided to set up a business called “Full & Frank Clothing” importing and manufacturing large-size menswear. Over the course of the last year, number of issues has arisen with the business and they are in need of legal advice.

Scenario 1

Hank had been in negotiations with a department store called Wesley & Jones to supply them with large-size clothing which included the “Wesley & Jones” branding alongside “Full & Frank”. Hank had made it clear that they would have to pay a premium, a higher price to reflect the dilution of the Full & Frank brand. Things went quiet for a few weeks and Hank assumed that the higher price had been agreed. On that basis, production went ahead with the Wesley & Jones branding included. However, when the first batch was delivered, Wesley & Jones refused to pay the higher price.

Legal Advice

Wesley and Jones have not breached any contract because they have not communicated either verbally or in written form to Hank and Brian regarding acknowledgement of their terms. And Hank and Brian had assumed that their terms are agreed which does not fall under the contract law . There is lack of communication with between both the parties as there was no consent or acceptance of offer from Wesley and Jones. This case does not fall under consideration or false statement because there was no such acceptance it was just an assumption from Hank .

Scenario 2

For the past two years, Full & Frank have been buying silk cloth from Tibet, via a company based in Kent called Everest Imports. However, the political situation in Tibet is such that Hank and Brian have become concerned about their commercial reputation. There have been demonstrations outside the factory and they decided to buy themselves out of the remaining two years of their supply contract. Brian negotiated a settlement figure with Everest of £60,000. However, it has now transpired that, only three weeks later, Everest lost its import license with Tibet and so would not have been able to honour their side of the contract in any event. It seems that Everest did not have the solid local links which they had referred to on their website.

Legal Advice

False statement- the social link that has been given by the Everest was not actually there. The information given was not true. Everest Imports have agreed on the terms of Full and Frank, which make them legally responsible for delivering the agreed supply on time. Thus, Full and Frank can claim for the damages to Everest Imports and can receive generous amount that will compensate their loss.

Scenario 3

Hank spent four months negotiating a supply contract with a ...