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Law Lecture 7 + Seminar 3

Void- contract never happened


Rescission- the revocation/repeal of a law or argument
If a contract cannot be rescinded, damages are usually granted.
Damages for an innocent misrep are generally less than those for intentional misrep.
Mistakes render contracts void.

Seminar 3

Question 1:

Likely that this involves a signed contract. The offer to reduce the rent until ‘things pick up
again’ is vague. What does it mean? We don’t know what the financial difficulties entail. The
offer is not valid because there is no consideration (Arthur receives nothing in return). The
promise is not binding. Under Pinnel’s Case 1602- part payment of a debt does not signify the
debt is paid off. If Arthur had claimed rent back to May, Brian could have claimed promissory
estoppel. Cathy does not necessarily have to share her money- but is the money in a joint
account? Is she also liable for the tenancy – does she live in the house?

Question 2:

Mrs Pelfer can claim half the market value as agreed – sues for breach of contract. Undue
influence- misrepresentation not likely here as the fact that she would reach/not reach Heaven
cannot be disproved. Solicitor and client – fiduciary relationship. Solicitor working for both sides
is unusual as well- possible conflict of interest. Brother Reynard and Mrs Pelfer- fiduciary
relationship. ‘Delay’ as a cause to lose the right to rescind does not really apply here as two
months is a very short amount of time. If he had sold the property on in good faith then she
could try and claim damages.

Question 3:

-According to Collins and godfrey not right. But Chadwell and Chadwell – is correct, he can have
two contracts for the same thing

-This is not frustration. Mike could be potentially culpable as he did smell the gas. This is not
really revocation- the contract is simply cancelled/Oz is stopped so Mike is somewhat in breach.
Oz can sue him for lost income. The £500 is accounted for in the figures. The £800 profit is
irrelevant to the contract as Mike is not involved/did not know about it.

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