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Aspects of Contract

Scenario1

Al operates a small business manufacturing specialist engine filters. In January, he placed an advertisement in a car trade magazine, ‘Trini Tuners”, stating that he would supply filters for $60 per filter, but would consider a reduction in the price for substantial orders. He received a letter from Toyota Trinidad Ltd. requesting his terms of supply for 1000 filters.

Al replied, offering the supply at a cost of $50 each.  Toyota Trinidad Ltd. responded to Al’s letter stating that they accepted his offer but that they would pay only $45.00 per filter. Al wrote back to Toyota Trinidad Ltd stating that he would supply the filters but only at the original price of $50. When Al’s letter arrived, the purchasing director of Toyota Trinidad Ltd. did not notice the alteration of the price and ordered the 1000 filters from Al, which was supplied.

Task 1: Scenario 1
Students are required to present an essay:

•    Discussing the impact of different types of contract and their possible use in the scenario.
•    Identify and illustrate the possible terms of the contracts identified with reference to their meaning and effect.

Scenario 2

In January 2013, Addy entered into a contractual agreement with Big B Ltd to write a study manual for an international management body. The manual was to cover the period from September 2013 till 2015, and it was a term of the contract that the text be supplied by June 2013 so that it could be printed in time for September.

By 30 May, Addy had not yet started on the text and, indeed, he had written to Big B stating that he was too busy to write the text.  Big B was extremely perturbed by the news, especially as it had acquired the contract to supply all of the management body’s study manuals and had already incurred extensive preliminary expense in relation to the publication of the new manual.

Advise Big B as to whether he can take any action against Addy.

Task 2:Scenario 2

Each student will be required to take the role of a legal advisor.

Advise Big B as his legal advisor as to the options that are available to him against Addy and how he may specifically recover the time and energy he has lost on the contract between them.

You will be required to provide Big B with answers to his question, supporting them with relevant principles and case law.

2.1 Apply the elements of contract in given business scenarios and show how the contract if any was formed.

2.2 Apply the law on terms of different contracts

2.3 Evaluate the effect of different terms in given contracts and suggest alternatives to the parties.

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