School of Business and Management
BUS 205 – Business Law Mid-­term Coursework
Date of Question: 28 October 2019
Deadline for Submission: 10 November 2019
Word Limit: 1200 – 1500 words
Instructions to candidates:
Please advise the parties regarding one another’s contractual relation, claim(s) and
position;; refer to authority at all times and underline them, e.g. A v B [2005];; xxx Act
2006.
Question set by:
Ms Tianyuan Huan
Markers:
Ms Tianyuan Huan;; Ms Janine Meiser
Problem-­styled Question:
Bob, a Dorset-­based interior designer, who owns the design firm Claret Ribbon Ltd, met his uncle
Angus for a Sunday stroll in Richmond Park. Bob told his uncle that he is looking for somewhere to
stay in London as he is planning to open a London office of the design company. Angus has an empty
one-­bedroom flat in Tredegar Square, Mile End, and is happy to let it to his nephew in a ‘business
capacity’ starting next month. Angus suggested that he would accept ‘about £800 monthly for rent’.
Bob thought about that for one night and sent a text massage to his uncle the next morning with the
following information, ‘I am writing to accept your offer to let your Tredegar Square flat for £800 per
month and I will transfer the first month’s rent in the next couple of days.’ Angus saw the text and
replied immediately, ‘Thanks for this;; Tredegar Square is a lovely area. I, however, would like to rent it
for £860 a month. If you do not text me back, I will assume you have accepted it for that price’. Bob
saw the text and after reading the first sentence, he assumed that his uncle is sending the message
to confirm the deal so did not read the rest of the text or reply. He then deleted the message to clear
the inbox.
Bob owns a few Pierre Bonnard prints. He thought the one bedroom flat would be too small to hang
all of them so decided to give away one print. He used ‘Shared’, a leading local advertisement
website and online community to post an advertisement on 21 October 2019: ‘One Pierre Bonnard
print – the Bowl of Milk to give for free. The print will go to the first person to arrive at 126 Tredegar
Square (detailed address followed) at 7am on 28 October 2019. Bob later changed his mind as he is
very attached to his collection and posted a cancellation on the same website on 23 October 2019.
Coco did not see the cancellation and booked a hotel room near the said address in order to be the
first to arrive before her roommate told her about the cancellation.
In preparation for the opening of his new design office in London, Bob went to PC Studio, the
country’s well-­known computer store. He told the shop assistant Elio the company has been using
‘Smartybean’, a specific design software, and said he will not even consider buying them if the
computers do not support the use of the software. Elio assured Bob that the computer would support
it. Bob then agreed to buy 20 (twenty) computers as Elio said if Bob makes a purchase over 19
(nineteen) computers, he can have 17.5% discount. Bob signed PC Studio’s standard order form,
which contains the following clause:
6.1 Any loss or damages incurred on the Buyer as a result of the items sold by PC Studio
being faulty and/or defective shall be limited to the contract price.
After the order was delivered, Bob discovered that half of the computers repeatedly switch off on their
own in the middle of works. In addition, none of them supports the use of ‘Smartybean’. As a result,
he missed a couple of deadlines agreed with the company’s clients, suffering financial loss. He also
had to pay penalties for late delivery of projects as per those contracts.
One of Bob’s clients, Focal Point Gallery hired Claret Ribbon to design the showroom and exhibition
gallery for a forthcoming exhibition. Bob approached the Gallery to explain the situation and
suggested that they will be unable to finish on time. Focal Point, however, had sold tickets for the
exhibition and being desperate for timely completion, agreed to pay Claret Ribbon an additional
£5,000 if he can deliver the design on time. Focal Point, in the past, also lent money to Claret Ribbon
repayable in 7 (seven) instalments. Until this date, Claret Ribbon has one last outstanding payment of
£6,700 to pay to Focal Point. Focal Point, being sympathetic of Bob’s situation also agreed to write off
the last payment. Claret Ribbon used this money reserved for the last instalment to purchase
replacements for the faulty computers. Bob and his team made efforts in this difficult period to finish
on time. Upon completion, Focal Point Gallery refused to pay the additional £5,000 as agreed. The
Gallery also demanded the final instalment of £6,700.