Coursework assignment (Must be 2,500 words minimum):

Touker advertises a new product, an electronic head massager, on his commercial website claiming that when used as instructed it will cure headaches. The massager is priced at 20. The website states that Touker is so confident of his product that he will pay 200 to anyone who buys it and finds it does not cure their headaches. To show he is serious Touker states that he has put 4,000 into a special bank account to pay for any such claims.

Deborah purchases one of the massagers for her personal use and uses it as instructed. She finds that, far from curing her headaches, the massager actually makes them worse. At midday on Monday 1st September, she calls Touker and insists that he pays her the promised 200 as stated on his website, as the massager has not cured her headaches. Touker refuses, saying it was only promotional sales-speak and was not meant to be taken seriously.

Peter, who runs a chain of health, beauty and massage parlours, wants to buy 250 of the head massagers to sell to his clients but not at the 20 unit price Touker is offering. At 12.30 hrs on 1st September, he telephones the number on the website and leaves a message on Toukers answer phone, stating that he would like to place a bulk order for 250 massagers but at a unit price of 15 each. Peter leaves his email address for Touker to contact him.

Touker hears the message two hours later and, thinking this is too generous a discount to give, emails Peter saying:

Touker to Peter sent Monday 1st September at 14.30 hrs, read by Peter at 14.35

Dear Peter, Thank you for your call asking for 250 head massagers at a discounted unit price of 15 per massager. This is a little lower than I am prepared to go to would you be happy with 18 per massager? Best wishes, Touker

Peter receives this email and decides to think further on the deal overnight. The following morning he emails Touker, saying:

Peter to Touker sent Tuesday 2nd September at 09.00 hrs

Dear Touker, Thank you for your email. That is still too pricey for me Im happy to agree on a unit price of 17 per massager, which Im sure you appreciate is a good deal due to the bulk order I am placing. Peter

Touker has also been thinking on the deal overnight, and is worried that may have lost a good order. He too sends Peter an email on Tuesday 2nd September saying:

Touker to Peter sent Tuesday 2nd September at 09.00 hrs

Dear Peter, On reflection, I think I can go to 15 unit price for the massagers thank you, I accept your offer and will despatch 250 massagers to you straight away with an invoice for 3,750. Thank you for your custom. Best wishes, Touker

Peter reads this email at 09.05 hrs on Tuesday 2nd September, and immediately rings Touker to thank him for the generous discount and to say he will go ahead with the order at 15 per massager. However, Touker has just finished reading Peters last email, and replies that he is withdrawing his offer to provide the massagers at 15 per unit. He says is he willing to sell them to Peter at his suggestion of 17 per unit. Peter is very unhappy with this and, after the two argue, hangs up on Touker.

Two days later Touker receives an email from Peter, stating that he has taken legal advice and his lawyer has confirmed that Touker is legally obligated to sell him the massagers at the amount they agreed of 15 per massager at a total cost of 3,750. Touker replies by email stating that he has already despatched the massagers with an invoice for them at 17 per unit and, as such, Peter is now obligated to pay him the higher amount of 4,250.

Advise Touker on the following issues (you MUST refer to relevant case law where appropriate to support your arguments):

1. a) WhetherheislegallyobligatedtopayDeborah200

2. b) Whether he is legally entitled to be paid the higher amount of 4,250 by Peter

3. c) ShouldPetercontinuetopursuelegalaction,whatmethodsofresolutionareavailableto

   Touker to settle their dispute, including taking Peter to court. You should note the

   advantages and disadvantages of each method you identify.

4. d) Based on your analysis, state which method of resolution you would recommend to Touker, and why.