Kings College London

This paper is part of an examination of the College counting towards

the award of a degree. Examinations are governed by the College
Regulations under the authority of the Academic Board.

LLB EXAMINATION
4FFLK902 ELEMENTS OF THE LAW OF CONTRACT
SUMMER 2015
TIME ALLOWED: 2 HOURS
ANSWER TWO QUESTIONS, ONE QUESTION FROM PART A AND ONE
QUESTION FROM PART B.

THIS IS A CLOSED BOOK EXAMINATION.

IN THE EXAM YOU WILL BE PROVIDED WITH: Copies of the lecture case
lists; Contracts (Rights of Third Parties) Act 1999; Misrepresentation Act
1967; Law Reform (Frustrated Contracts) Act 1943; Unfair Contract
Terms Act 1977, ss 1-7, 11-13, 26, Schedules 1 and 2; Unfair Terms in
Consumer Contracts Regulations 1999.

PLEASE ENSURE YOU WRITE THE NUMBER OF THE QUESTION YOU

ARE ANSWERING ON EACH PAGE AND THE EXAM COVER SHEET.
PLEASE WRITE LEGIBLY.
DO NOT REMOVE THIS EXAM PAPER FROM THE EXAMINATION ROOM
TURN OVER WHEN INSTRUCTED
2015 Kings College London

4FFLK902 SUMMER 2015

PART A

1. John has a rather difficult relationship with his father, Robert, who
always seems to want to make decisions for him. John has received a
number of offers from different UK Universities to study for a three
year LLB, including an offer from the Dickson Poon School of Law.
Robert is adamant that John should take the offer from the Dickson
Poon School of Law and John eventually, and rather reluctantly,
decides to take it. Afterwards Robert says to John that he will pay all
his tuition fees and living expenses. Robert pays all the tuition fees
and living expenses in Johns first year, but after that Robert refuses to
pay any further amounts.
Before going to Law School John works part time in a bicycle shop. On
the day that he finishes his contract the owner (Bill) tells John that he
wants to give him an additional payment of 500 as thanks for doing
such good work. Bill had no contractual obligation to do so. John uses
the money to buy a new computer. Subsequently Bill refuses to pay
John the 500.
In order to raise some extra money to spend at university John decides
to sell his own bicycle. He advertises it in the local newspaper in these
terms:
Bicycle offered for sale- 600. Almost brand new. Reply by text to
0777792922 or post to 24 Smith Gardens London NW10
Susan posted a letter stating she wanted to buy the bicycle, but a few
minutes later changed her mind as she suddenly realised that she
would not have enough money for a holiday if she bought it. She
immediately sent a text informing John she did not want the bicycle,
which, of course, John received before the letter.
Question continues on next page

4FFLK902 MAY 2015

Advise John
a) Whether he has a contract with Robert for payment of his fees
and living costs for the three years that he is studying for an
LLB at the Dickson Poon School of Law.
b) Whether he can claim the 500 from Bill.
c) Whether he has a contract for the sale of the bicycle to Susan.

2. The doctrine of frustration is too limited in its application and the

provisions set out in the Law Reform (Frustrated Contracts) Act 1943
governing the effects of frustration are inadequate.
Discuss.

3. Henry is a race-horse owner and enters into the following transactions:

a) Henry buys twenty tons of hay for feeding to his horses in winter
from a local farmer, Albert. Henry needs the hay to have matured
for two years and believes Albert is the only local supplier selling
hay of this kind. He says to Albert, Thank goodness you are
someone I can rely on to guarantee that I am getting two year old
hay. Albert says nothing. When it is delivered it turns out that
the hay is from the harvest that has taken place only the previous
month. Henry wants to return the hay.
Advise Henry as to whether he can do so.
b) Henry has bought a racehorse for 50,000 from another racehorse
owner, Emily from whom he had previously purchased horses.
Question continues on next page

4FFLK902 MAY 2015

During the negotiations for the sale Emily told Henry that she
believed the horse had a distinguished pedigree, being of the
same stock as a former winner of several major races, including
the Derby. But she also said that she had not had the time to
verify this information and that Henry should check it. Henry
asked one of his employees to check the statement, but the
employee forgot. Henry, being pressed by Emily to conclude the
sale, decided to go ahead anyway.
After Henry has paid Emily the 50,000 and taken delivery of the
horse, he discovers that the horse does not have any such
pedigree. This means the horse is only worth 1,000. Henry has
spent 500 on transporting the horse to his stables.
Unfortunately, the day after Henry discovers the truth about the
horses racing pedigree, the horse falls in its stable and is
injured.
Advise Henry as to what remedies, if any, that he may have.
c) Henry needs a horse transporter (a large van modified for
carrying horses). He sees an advertisement for an auction for the
sale of horse transporters The auction is described in the
advertisement as being without reserve. Henry travels to the
auction at a cost of 400. At the auction there are very few
bidders and he bids 200 for a transporter which has a market
value of 30,000. The auctioneer refuses to accept Henrys bid
telling him that there is no concluded sale until his hammer falls.
Advise Henry as to as to what remedies, if any, he may have.

See Next Page

PART B
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4FFLK902 MAY 2015

4. To celebrate the end of their first year law exams, Anna and Bill decide
to go for dinner at a local restaurant called PizzaEspresso. At the
entrance there is a rack and shelves for storing coats and bags. To the
left of the rack, in dark red, there is a sign reading PizzaEspresso
accepts no liability, howsoever caused, for loss or damage to property
or any personal injury on its premises. Anna puts her bag, containing a
laptop and other items worth 500 together, on one of the shelves.
They are the first people at the restaurant. They sit down at a table
and order two pizzas and two grape juices from Cath, the business
manager.
Cath goes and switches on the new pizza oven. This was delivered and
installed earlier that day by QuickOvens Ltd, who also provided the
service of taking away Caths old oven. Sadly, the oven appears have a
malfunction, and will not turn on. Cath returns with the grape juices
for Anna and Bill. She asks if they would like a non-pizza dish. They
reply this is no problem. But, as Cath is putting the drinks down she
negligently drops one of the glasses, which smashes and cuts Bills arm.
Anna and Bill decide they want to leave, but as Anna goes to collects
her bag, due to faulty carpentry, the shelves suddenly collapse. Her
bag and laptop are crushed.
Cath has now contacted QuickOvens Ltd which is refusing to replace
the machine until next month. It points out that Cath signed their
standard form contract, where clause 19(f) excludes any liability for
defects, and warns of a one month waiting period for repairs. This
means that Cath will be unable to sell pizzas, which she estimates will
result in losses of 10,000. Anna and Bill have also written to demand
compensation for Annas bag and Bills injury.
Advise the parties.
See Next Page
5. As a very general proposition, consumer law in this country aims to
give the consumer an informed choice rather than to protect the
5

4FFLK902 MAY 2015

consumer from making an unwise choice. Lady Hale, OFT v Abbey
National plc [2009] UKSC 6, [93]
Discuss

6. Wheels Ltd (W) was a small, local, business that hired out trucks, vans
and horseboxes, in a thinly populated rural area. It made the following
agreements:
with Flowers for All (F) to hire a large air-conditioned van at, 100
per day, for seven days beginning on 3 November, for delivering exotic
flowers to clients. On 2 November, F told W that, in fact, they would
need the van for only two days and would be returning it to W at the
end of the second day. Ws manager was annoyed and said that a twoday hire was uneconomic for W which was, therefore, terminating the
contract. F said Dont be ridiculous. In fact, W urgently needed the
van to satisfy the needs of another customer - Meats (M) and so
entered into an agreement with M to hire the van, starting on 3
November, for 21 days at 90 per day. On 3 November, Fs driver
arrived at Ws yard to collect the van saying that F would, after all, be
requiring it for the full seven days; and
with Alan (A) to transport his thoroughbred stallion, King Croesus
who, as W knew, would soon be retiring to stud - to Epsom racecourse,
where he was favourite to win the feature race. The driver got lost
after being diverted off the motorway and arrived at Epsom too late
for King Croesus to race. On the motorway on the way home, the driver
was distracted, by a bird hitting the windscreen, and lost control. The
horsebox swerved into the central barrier and then into the path of an
oncoming heavy lorry. It was badly damaged and King Croesus was
killed.
Question continues on next page
F claims damages for Ws breach of contract in failing to provide the
refrigerated van on 3 November. W counterclaims damages arguing
that the contract was terminated by Fs repudiatory, anticipatory
6

4FFLK902 MAY 2015

breach in stating on 2 November that it needed the van for only two
days, not seven as originally agreed.

A claims the following in damages from W:

7.5 million (the market value of King Croesus),
800,000 for the loss of the winners prize money, and
51 million expected stud fees (at 100,000 per service) for the
next three years. (Had King Croesus won the race at Epsom, Alan
could have charged 100,000 per service but if the horse had not
won Alan would have been able to charge only 50,000 each
time.)

a) Explain whether F is likely to succeed in its claim against W or

whether you think Ws counterclaim will be successful, and why.
b) Explain whether or not A is likely to succeed in his claims against
W.
c) Suggest a way, or ways, in which the parties could have designed
their contracts to avoid these disputes.

Final page of questions

Kings College London

This paper is part of an examination of the College counting towards
the award of a degree. Examinations are governed by the College
Regulations under the authority of the Academic Board.

LLB EXAMINATION
4FFLK902 ELEMENTS OF THE LAW OF CONTRACT
SUMMER 2014
TIME ALLOWED: 2 HOURS

ANSWER EACH QUESTION IN A SEPARATE ANSWER BOOK AND WRITE

ITS NUMBER ON THE COVER. PLEASE WRITE LEGIBLY.
DO NOT REMOVE THIS EXAM PAPER FROM THE EXAMINATION ROOM
TURN OVER WHEN INSTRUCTED
2014 Kings College London