Tutorial answerss...docx

D the courts approached the same issue differently in

Info icon This preview shows pages 20–22. Sign up to view the full content.

View Full Document Right Arrow Icon
d) The courts approached the same issue differently in the more recent case of Williams v Roffey Bros . What did the court say about performance of an existing contractual obligation in that case? The court held that Williams had provided consideration for the promise as he avoided penalties for late completion and saved the effort of hiring another contractor. Therefore the working relationship stands e) What were the ‘additional benefits’ conferred by Williams to the defendant in that case? The benefits to the defendant is that the promise was held for the defendant to receive the extra money, setting a precedent in future cases. NB: In Williams v Roffey Bros , the defendant was provided with tangible commercial benefits, this decision would not apply where the benefit provided was, e.g., avoiding inconvenience. Answer the following problem questions, applying the relevant rules of consideration using the IRAC method. Cite the names of cases where relevant. Exercise 6.2 Kim buys a used car from Huyen for $5,500. Kim pays Huyen the $5,500 and after she gets the keys of the car from Huyen she asks Huyen if the car has been serviced regularly. Huyen replies, “Of course the car has been regularly serviced just like the manufacturer recommended”. Three days later Kim discovered that the car has not been serviced for more than 2 years, during which time it has been driven more than 40,000 kilometres. Advise Kim whether she can successfully sue Huyen for damages for breach of contract. The issue is to determine whether consideration was given when Huyen made promises to Kim.
Image of page 20

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
If the contract is a simple contract, then consideration must be provided. Consideration can be present or future, but not past. As proven in the case of Roscorla v Thomas, once the contract is signed, sealed and delivered, the promises made by the seller are no longer enforceable as they are not supported by consideration. The contract had already been concluded when promises were made. As in the case of Roscorla v Thomas, Kim could have also overcome this problem by obtaining the assurances before payment. However, the payment had already been made and keys exchanged once Kim had asked for such assurances. Therefore it stands that Kim cannot successfully sue Huyen for damages for breach of contract given the precedent of Roscorla v Thomas . Exercise 6.3 Terry contracts with Dave to paint Dave’s house for $4,500. When the job is less than half finished, Terry gets a great job offer in Adelaide and tells Dave “I’m sorry I can’t finish your job as I have accepted another job offer in Adelaide”. Dave is very worried about being able to move into his house on time and says to Terry I’ll pay you an extra $1,000 if you can finish painting the house before you go to Adelaide .” Terry agrees to this proposal and finishes Dave’s house as promised. Dave pays Terry only $4,500 and refuses to pay the other $1,000.
Image of page 21
Image of page 22
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern