Productions and Operations Management Module Assignment

MDIS ASSIGNMENT Business Law (ABAD1 2524A, 2525A & 2526A)

The Assignment Question is in 2 parts as follows:

a) Set out the law relating to Terms of a contract, with specific reference to Express terms,
Implied Terms and Exclusion Clauses. Your answer must cite relevant case laws and/ or
examples.
(20 marks)
b) On Monday, Albert who is Betty’s distant cousin visited her house to inspect her car that
she wanted to sell. He liked the car very much and after some discussion said that he
was willing to pay $10,000 for it. Betty said that although it was a reasonable price, she
wanted $12,000. Albert, not being able to commit to such an amount, told her that he
will need some time to think about it.
Later in the day, Betty wrote to Albert and stated that she would take £10,000 for the
car. The letter was received by Albert at his home on Wednesday morning.
At 4.00 pm on Tuesday afternoon, Albert sitting at his office in London decided that he
really wanted the car and wrote a letter to Betty accepting her offer. At the Post Office,
just as he was about to post the letter, he met Callum, Betty’s bother, who told him, ‘I
gather that Betty has finally sold her car.’ Betty had, indeed, sold the car to Danny.
Albert, ignoring what Callum had said, posted his letter anyway.
Upon arriving home, Albert discovered a message on his answer phone from Betty. The
message had been left at 3.00 pm; Betty had stated, ‘I withdraw my offer.’
Advise Albert if there is a valid agreement with either Betty. (80 marks)

(Total - 100 marks)

Individual Assignment

Assessment Requirements and Key Pointers

The assessment is a two-part assignment on Business Law, totaling 100 marks.

• Part A (20 marks): Requires an explanation of the law related to the terms of a contract. Key concepts to be covered are Express terms, Implied terms, and Exclusion clauses. The answer must include relevant case law or examples to illustrate each concept.

• Part B (80 marks): A problem-based question that requires the student to apply principles of contract formation. The main task is to advise Albert on whether a valid agreement was formed with Betty. This involves a detailed analysis of the communication timeline, specifically focusing on offer, counter-offer, acceptance, and revocation.

The Academic Mentoring Approach

The academic mentor guided the student through a step-by-step process to ensure a comprehensive and well-structured answer.

Part A: Theoretical Framework

1. Breaking Down the Topic: The mentor first broke down the broad topic of "Terms of a contract" into its three sub-components as specified in the question: Express terms, Implied terms, and Exclusion clauses.

2. Defining Key Concepts: The student was prompted to define each term clearly. For Express terms, the focus was on what is explicitly stated, either orally or in writing. For Implied terms, the mentor explained the different ways a term can be implied—by custom, by statute (e.g., Sale of Goods Act), or by the courts (e.g., the business efficacy and officious bystander tests).

3. Integrating Case Law: The importance of citing relevant case law was emphasized. The mentor guided the student to identify landmark cases that illustrate each concept. For instance, L'Estrange v F. Graucob Ltd was used for express terms and the binding nature of a signature, while The Moorcock and Shirlaw v Southern Foundries were recommended for implied terms. For Exclusion clauses, the mentor explained the rules of incorporation and interpretation, using cases like Thornton v Shoe Lane Parking Ltd and White v John Warwick & Co Ltd.

4. Structuring the Answer: The mentor advised a clear, logical structure for this section, with a separate heading for each type of term, followed by its definition, explanation, and relevant case examples.

Part B: Problem-Solving Application

1. Issue Identification: The mentor's first step was to help the student identify the central legal issue: Was a valid contract formed between Albert and Betty? This required an analysis of the elements of a contract, specifically offer and acceptance.

2. Chronological Timeline: The mentor advised the student to create a step-by-step timeline of all events and communications. This is crucial for problem-based legal questions.

   • Monday: Albert's offer ($10,000) and Betty's counter-offer ($12,000). The counter-offer terminates the original offer.

   • Tuesday, 3:00 PM: Betty's revocation message is left on Albert's phone.

   • Tuesday, 4:00 PM: Albert writes and posts his acceptance letter.

   • Post Office: Albert receives reliable third-party information from Callum that the car has been sold.

   • Upon Arrival Home: Albert discovers the revocation message.

   • Wednesday: Albert receives Betty's written offer.

3. Applying Legal Principles: For each event, the mentor prompted the student to apply the relevant legal rules.

   • The offer in the letter from Betty was received on Wednesday, making the offer effective then.

   • The revocation of the offer from Betty was effective when it was received by Albert, which occurred both through the third party (Callum) and the answerphone message.

   • The Postal Rule was discussed, but the mentor clarified that it does not apply when the offeree has prior knowledge of the revocation. The case of Dickinson v Dodds was a key reference point here.

4. Formulating the Conclusion: Based on the analysis, the mentor guided the student to conclude that no valid agreement was formed. The reasoning was that the offer was validly revoked before Albert could effectively accept it.

Outcome and Learning Objectives 

The process resulted in a comprehensive and accurate solution that demonstrated a strong understanding of the subject matter.

• Learning Objectives Covered:

  • Theoretical Knowledge: The student demonstrated an understanding of fundamental concepts of contract law, including express terms, implied terms, and exclusion clauses.

  • Case Law Application: The ability to recall and apply relevant case law to support legal arguments was evident in both parts of the answer.

  • Problem-Solving Skills: The student successfully applied legal principles to a hypothetical scenario, a key skill for a business law assessment.

  • Logical Reasoning: The structured, step-by-step analysis of the timeline and legal principles showed a strong capacity for logical and coherent reasoning.

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