Element 4 Misrepresentation

1. Why is it important to ask as many relevant questions as possible of a seller when you are considering buying products or materials?

2. What affect do statements that start "In my opinion" or "In our view" have on a negotiating process? Does it depend on who is making them?

Element 5 Mistake

1. You have negotiated a sale of 1,000 pencils at a price of 500 Euros but in sending confirmation you left out a 0. You have sent the pencils and have received payment of 50 Euros. The customer says it is your hard luck. Has he a case? Must you accept?

2. M went to an auction sale of a farm. He did not examine the plans available at the auction as he thought he knew the farm well. He bought it but afterward discovered that fields he always thought were included as belonging to the farm were in fact not. Now he does not want to pay and the auctioneer is after him. Can he avoid the contract?

Element 6 Remedies for Breach

1 You are negotiating a contract for the supply of a specially designed component for your main product line. Given what we have just learned what information - other than the specification of the product and delivery terms etc-would you like to give to the supplier and why?

2. E, a jam-maker, orders fruit from F, a fruit farmer for an agreed price of GBP 460. F sends the fruit in accordance with the contract but E refuses to accept them and they are returned. F now sells the fruit for GBP 420 and has a carrier's bill for GBP 8. If he brings an action against E, how much is he likely to recover?

Element 7 Discharge of Contract

1. A client has informed you that he will not accept the tomatoes he has ordered. You send them anyway and leave them in his yard. They rot and you sue for the invoice value. What do you feel may be the outcome?

2.You have agreed a price in US Dollars for a consignment of goods to New York but between the time that you agreed the deal and the time of delivery the dollar has reduced in value from 1.18 to the Euro to .80. You are looking at a huge loss. Must you accept this situation?

3. There is a ferry strike in Finland and all space on other available ships is taken. You must send the goods by road to St. Petersburg at a large additional cost?

Element 8 Arbitration

1. What type of companies would particularly benefit from each of the points made in favour of arbitration?

2.Are such clauses fair in contracts between big companies and consumers? Is there or should there be some other form of redress available to consumers?

Element 9 Applicable Law & Jurisdiction

1. How important to do consider the choice of law and jurisdiction causes in an agreement to be?

Element 10 Exemption Clauses

1.D took his girlfriend E for a ride in the "Tunnel of Love". He paid the fare for two and put the tickets into his pocket without looking at them. During the ride the vehicle overturned due to a defect in its construction. D and E were seriously injured. What is the position if

(a) if there was a large sign at the entrance to the tunnel saying "all passengers at their own risk"

(b) that on the back of the tickets were the words "Proprietor not liable for injury to riders howsoever caused"

2.

On a piping hot summer's day Harry parked his car as usual in a car park owned and operated by Parking Ltd. On entering the car park an obscured sign was hidden behind some of the growth which had been bursting forth this glorious summer. When he came back the car was damaged and the attendant had no explanation but pointed out that the sign partially obscured said "All cars at owners risk". Henry replied that he didn't own the car - it was rented - but he was responsible for the damage under the rental contract and that the sign could not be read.

What if Henry used the park regularly?