Law of Contract Essay -- Papers

Law of Contract Michelle is at University, studying to be a veterinary surgeon. David, a close family friend is also a veterinary surgeon. Whilst away at University, Michelle received a letter from David, saying that he was due to retire in a few weeks' time and that he wondered whether she would be interested in buying his veterinary equipment for the bargain price of 500 pounds. His letter asked for a prompt reply as a junior partner in his veterinary practice was also interested in buying the equipment, albeit at a higher price. Upon receipt of David's letter, Michelle decided that she would like to buy, but she would need to borrow the money. In order to speed matters up, she then wrote to David expressing a firm interest, but asking if he would be prepared to accept payment by instalments. Her letter got lost in the post and was never received by David Not having heard from David, Michelle arranged a bank loan and then posted a second letter, enclosing a cheque for 500 pounds. This letter did arrive, but by this time, David had assumed that she was not interested in the equipment and had already sold it to his junior partner instead. With reference to the case situation above, discuss, using decided cases to support your arguments, the contractual implications and the remedies, if any, that Michelle might be able to pursue against, David. Answer In discussing the situation amidst Michelle and David, it is critical to establish whether an actual contract has come into existence between the two parties. It is therefore necessary to examine, in relation to the scenario, the presence of the three chief element... ...o of the scenario, David is referred to as 'a close family friend'. Agreements with relations of this manner are not normally imagined to be subject for litigation. In addition to the relationship of the parties, is the immense sense of ambiguity present throughout the scenario. The court may, on these grounds declare the agreement void with the presumption that there was no intention to create legal relations (Gould v Gould 1969). After keenly examining the scenario with the application of knowledge of the different elements of agreement, it may be concluded that a contract did not exist between David and Michelle because of the deficiency of those factors essential to the formulation of an agreement. The lack of contractual implications thereby greatly inhibits the possibility of a successful pursuit against David.