Questions
1 Petunia wants to buy a new washing-machine, and notices the following promotional
campaign in the window of a shop called Washwell,‘One Smartlook iron free of charge
to any customer purchasing a Quickwash washing-machine priced at £250 or more.’
Petunia sees that the Quickwash machine is quite expensive at Washwell, but decides
that the inclusion of a free iron makes it a good bargain. She therefore decides to buy a
washing-machine under the promotion, but when she pays for it, the shop assistant
explains that the last Smartlook iron has been given away that morning and that there
are no more available at present.
On the way out of the shop Petunia sees a poster which states ‘A free watch will be
given to anyone spending more than £50 in our store today’. Petunia returns to the
cashier to claim her watch, and is told that she should have asked before she bought the
washing-machine.
Advise Petunia regarding both the iron and the watch.
2 Enrico was selected as a potential new member of a book club, Bookworms. He
received a letter, addressed to him personally, stating that he had been chosen from
people in the area to be given the opportunity to buy discount books direct from the
supplier.The terms were that he needed only to buy one book per month from a ‘large
list of titles’, and that the price would be ‘significantly lower’ than bookshops could
meet. Enrico agreed to join Bookworms, but was very disappointed when the first list
only contained twelve titles, none of which appealed to him. He decided to order one,
however, as a gift for his sister.The following week he saw the same book in a local store
at £5 less than he had paid for it.
(a)Has a contract been formed between Enrico and Bookworms? If so, discuss
whether it has been broken by either party.If this is the case,what remedies might
be available.
(b)Assuming a contract has been formed, explain how the courts will determine what
the terms of the contract might be.
(c) Consider what change(s) should be made to the ‘rules’ relating to the formation of
a contract and explain why you think this is needed.
3 Aman, a car dealer, has a number of conversations with clients in his showroom.
Bert states that he wishes to buy a particular Candida car on display in the
showroom at £10,000, but Aman says that he could not sell it for less than £10,500.
Aman says no more to Bert, but Bert assumes that the car is his for £10,500.
Aman offers to sell a Delissimo car to Emma for £15,000 and says that she can let
him know by Friday if she wants the car. On Thursday afternoon Fred pays Aman
£20,000 for the same car. Emma sends Aman an E-mail on Friday to say that she wants
the car.
Aman makes an offer to sell a Grandino car, priced £22,000 to Harry who says he
will think about it. Harry posts a letter to Aman the same day to say that he does want
the car. Later that day Harry changes his mind and sends a fax message to Aman to say
that he no longer wishes to buy the car after all.
Consider whether Aman has made binding contracts with Bert, Emma, Fred, and
Harry.
OCR 2003
44 Contract law