the entrance of the car park, which has been partly
obscured by overgrown shrubs, states: ‘Cars parked
entirely at owner’s risk’. Jim pays £7 for a family
admission ticket to ‘Fun Park’, which is managed
by Leisure Ltd. The back of the ticket contains the
following clause: ‘The company does not accept
liability for death or personal injury to visitors,
howsoever caused.’ Jim and his wife are watching
their children on the ‘waltzer’ when a metal bar flies
off, injuring Jim and his wife. After receiving hospital
treatment, Jim returns to his car to discover that it
has been damaged by a Strand Council refuse van.
Advise Jim and his wife.4 Angela buys an ‘Onion’ personal computer from
Future Computers Ltd. She signs a sales note
in the shop which states: ‘Any express or
implied condition, statement or warranty,
statutory or otherwise is hereby excluded’.
After a week’s satisfactory use, the ‘Onion’
refuses to work.
What is the legal position if:
(a)Angela bought the ‘Onion’ for her own personal
use?
(b)Angela bought the ‘Onion’ to help in her work as
an accountant?Part 3Business transactions
300
1 ‘It is indisputable that unless all the material terms of
the contract are agreed there is no binding contract.
An agreement to agree in the future is not a contract;
nor is there a contract if a material term is neither
settled nor implied by law and the document
contains no machinery for ascertaining it’ (Maughan
LJ, Foleyv Classique Coaches Ltd(1934)).
Explain this statement.
2 Tony, the owner of a London-based manufacturing
company, has to attend an important business
meeting in Edinburgh on Monday. He is virtually
certain to be awarded a lucrative contract for his
company if he keeps the appointment. He books
a flight on-line with PlanesRus. The booking
conditions include the following statement: ‘the
company gives no guarantee that a seat will be
available on a particular flight and reserves the right
to transfer customers to later or earlier flights and
will not in such circumstances be liable to pay
compensation.’ Tony books a taxi to take him to the
airport in London and overnight accommodation in
Edinburgh for the Monday night. On arrival at the
airport for his flight, he is informed that the morning
flight to Edinburgh is full but he is allocated a seat
on the Tuesday morning flight. He fails to keep his
appointment and as a result loses the contract for
his company.
Advise Tony who wishes to claim damages for the
lost business deal, the cost of his taxi fare and the
hotel booking.
3 Critically evaluate the similarities and differences
between the protection provided by the Unfair
Contract Terms Act 1977 and the Unfair Terms in
Consumer Contracts Regulations 1999.4 Fred is a newsagent in Fordsworth. A salesman
from Tills Ltd calls and attempts to persuade him
to take out a hire agreement on a new electronic
till with stock-control facilities. The agreement is for
a period of three years. Knowing that the machine
is likely to become dated fairly quickly, Fred asks
what will happen in such a case. The salesman
replies that his company will update the machine
every 12 months at a nominal charge; Fred signs
the hire agreement, which does not contain this
term. Fifteen months later Fred learns that Tills has
launched a new electronic till which is much more
reliable and easier to use than the model he has
hired. He contacts Tills Ltd which tells him he is not
entitled to the new model but that as a gesture of
goodwill the company will replace his current till for
£500 and a 20 per cent increase in his rental. Fred
cannot afford this and finds he can get a new
electronic till with the features he requires from
another company much more cheaply than his
current rental. He wishes to withdraw from his
agreement with Tills Ltd.
(a)Advise Fred.
(b)What difference, if any, would it make to your
answer if the salesman’s statement had been
included in the hire agreement?Specimen examination questions