Adam and Charlie Case Study Sample

Answer One: 

Contract Law Case Study

Issue

1. Whether the Contract between Adam and Charlie Charles is valid or not?

2. Is Adam liable for all the happening at the even with him?

3. Would it make any difference if the website had not mentioned Charlie Charles’s standard terms and conditions and the first time Adam could have been aware that the company had any standard terms and conditions was when Adam’s ticket and accompanying letter arrived?

4. Would it make any difference if Adam had ordered tickets to similar events from Charlie Charles’s website on several previous occasions, on all of which the standard terms and conditions had been properly displayed and Adam had clicked the check box stating that he agreed to them?

Rule

1. Misrepresentation Act 1967

2. Unfair Contract Terms Act 1977

Application

In the lights of the present facts and circumstances of the case, Adam books tickets for an event of book signing by his favorite author Betty Booker. The website Adam uses for the same has the ticket which include certain terms saying that a copy of book by Betty Booker novel named Deadly Death shall be provided with a personal meeting, signature on five books and a signature photograph by Betty Booker. By seeing all this Adam opens up the link and add it to the basket and clicks on the Checkout Now button. By following that link it pops up stating that he must agree to the standard terms and conditions of Charlie’s Charles’s which according to the message shall open up the full copy of the standard terms and conditions.

Agreeing to it the next page opens and is blank and at the bottom of the page it was mentioned to go to the next page in which again it was mentioned to agree to the standard terms and condition s of Charlie Charles ana a cancel button. Adam agrees to the standard terms and conditions and immediately next step was regarding the payment method when he entered the credentials and then his order was complete. On receiving of the ticket to the event also received a printed copy of the Charlie Charles’s standard terms and conditions which Adam ignored and did not read them. On the day of the even Adam gets injured by sitting on the chair as the chair collapses and which causes Adam deep cut on thigh.

It creates and issue of being negligent on the part of the employees of Charlie Charles, therefore it was mentioned in the standard terms and conditions of Charlie that he is not liable for causing any personal injury during the event also has the reserve rights to cancel the meet up with the author without giving any notice or any specific cause for cancellation. Furthermore, to the terms and conditions of the contract Adam did not get to meet the author Betty Booker after the event was over and nothing like mentioned on website happened. Adam was told that the books with the signature on it and a photograph shall be sent through post.

According the facts mentioned above it can be seen that there was misrepresentation of the facts of the event, and the website clearly mentioned that there shall be a personal meeting with the author after the event is completed, because of which Adam confirmed the provided steps for the registration and to get the ticket to the event also to get the chance to meet his favorite author Betty Booker. In the case of Derry v. Peek [1889] UKHL, the court held that the actions failed because it was not proven to the director, also lacked the honest belief on what was said. It was also pointed out that the unreasonable grounds of belief are not deceitful, it is an evidence through which deceit is inferred.

Further it was also held that no duty would be required in the relationship to non-fraudulent misrepresentation, without the presence of a contract. In the case of Heaven v. Pender [1883] 11 QBD 503, it was held that if there is deceit or fraud it should be shown that a defendant mainly knows the statement is untrue or has no belief in its truth also is reckless as whether the statement is true or false. Therefore, damages for misrepresentation has been provided under section 2 of the Misrepresentation Act 1967, which says that if a person has entered into a contract after been misrepresented of the facts by the other party and has suffered the loss and is disappointed through the actions of the other party shall be liable to get the damages and notwithstanding that the misrepresentation was not made fraudulently, unless he proves that he had reasonable grounds to believe and did not believe up to the time the contract was made and the represented facts were untrue.

The person facing the damage by such act shall be provided with the compensation and damages by the other party. But thee was negligence on the part of Adam by not going through the terms and conditions when provided, moreover ignored the printed information and agreed to the terms and conditions. Section 2 of Unfair Contract Terms Act 1977, tells about the negligence liability which says that a person cannot refer to any terms and condition provided in generally which excludes the liability for death or personal injury because of negligence. It is the liability of the customer or consumer to look each and everything mentioned under the contract, therefore the website did not have the terms and conditions mentioned but later was sent to Adam with the ticket.

Also, it was a duty on the part of Adam to read the standard terms and conditions and then react on it. The contract was first misrepresented by the website as they mentioned about the facilities and did not stick to the same on the day of event, also the terms and conditions were not mentioned before the signing of the contract. An act of negligence was conducted on the part od Adam by not going through the printed copy sent of the standard terms and condition. In the case of Anns v. Merton London [1977]UKHL, [1978] AC 728, it was a judicial decision of hon’ble Supreme Court to establish the broad test for determining the existence of the duty of care in the action of the negligence which was known as the Anns test and was further overruled by the case of Murphy v. Brentwood DC [1991], the House of Lords held that the council was not liable in the absence of physical injury. Also, the negligence should be tested on the parts of the parties which have entered into a contract, it was further disapproved in the case of Dutton v. Bognor Regis UDC and the Anns test were preferred and the two-stage policy was accepted.

Conclusion

The contract between Adam and Charlie is valid as Adam agreed to all the terms and conditions without knowing the terms and conditions, also did not bother to go through the terms and conditions when received. There was misrepresentation of the facts on the part of Charlie’s website due to which Adam got excited and proceeded to fulfill the requirements of the website and receiving the ticket to the event. There is a vast difference on the information provided on the website and mentioned in the contract and the terms and conditions sent to Adam. The information has been misrepresented and an act of fraudulent representation comes to the rise.

Answer Two:

Case Study: Daniel and Eric

Issue

1. Would it make any difference if, during the argument, Daniel had said to Eric that Eric has only suggested they meet with a business advisor because he wanted to make sure that Daniel failed, so that Eric could be the successful one and that if Eric did not trust him, they might as well end this sham of a relationship?

2. Whether, alternatively it would make any difference if, instead of refusing to meet with the business advisor, Daniel had agreed and the couple had met with the advisor?

3. Whether the gift made by the Eric is a valid transfer?

4. Is Danial liable to pay the amount transferred by Eric as gift?

Rule

Common Law

1. Transfer of Property Law

2. Contract Law

Application

In the light of the facts and circumstance present in the case Daniel and Eric are dating since several years and did not share their finances also do not live together. One day Danial tells Eric that his company is making people redundant and because of which he is worried that he will be laid off the work. He also tells Eric that he believes that he can setup his own business and can achieve success in the same only if he had the sufficient start up capital. Eric asks Danial about the expenditure and actually how much amount is needed to setup the business. In reply Danial tells Eric that he would require amount between £15,000 and £20,000, whereas Eric had £18,000 in his saving also puts and immediate offer to Danial to accept the amount from him as a gift.

Therefore, Danial rejects the offer, Eric then advise Danial to see a business advisor who can provide them with the independent opinion as to the validity of the Daniel’s business plan and model. For instance, Daniel agrees and fix up the appointment, and soon after fixing up the appointment cancels it by saying that he is offended that Eric did not trust the business idea proposed by Daniel, which further lead to an argument. On the next day Eric transfers the amount of £18,000 into the bank account of Daniel. After utilizing the money in the startup of the business Daniel breaks up with Eric. Later Eric demands for return of the amount gifted to Daniel by him.

According to the above mention facts and circumstances there was no legal binding contract between Eric and Daniel. Eric gifted the amount to Daniel with all willingness and consent. Therefore, Daniel in the first instance rejected the offer of the money transfer by Eric as gift, no forceful intentions or any pressure was seen during the conversation and transfer of money. Gift in terms of law means the transfer of the property by the will and consent of the person who is making gift, also is of sound mind and have the knowledge about the facts and circumstances of the present scenario. Gift is also a kind of promise made to the other party who is involved in it. According to the English law trust can be made without the formality and do need require of any written contract.

A deed which is in writing and carry the legal instrument and passes, confirms, affirms the interest of people and rights of people or the property that has been signed, delivered and attested in some jurisdiction which is also sealed is commonly associated with the transferring of the title of the property. It is also provided in the Dictionary of Law that an act which ha the essential of gift deed from the donor to the donee, also the donee gives no consideration in return. The donee can enforce a gift deed against the donor. Other such acts or deed are not enforceable in general and in the above mention facts there was nowhere mentioned that Daniel had to return the money to Eric after using it.

Also, the transfer of money was one by the consent and will of Eric whereas Daniel refused to take the money and never asked Eric to transfer. Eric himself transferred the money and Daniel as been in need accepted the amount and utilized it. Therefore, the amount transferred was done in the gift deed with not consideration in return, therefore Eric has no liability to ask for the money back from Daniel. In case of McGraddie v. McGraddie & Anor [2013] WLR 2477, the court held that if a gift is made with consent and consideration of the donor and is accepted by the donee is a valid transfer of the property and fulfillment of the gift deed.

In the case of B (a child), Re [2013] Fam law 946, it was found that there was risk in prepare any gift deed is on the part of the donor and not on the part of donee. The question of fact arises that the gift transferred by the donor is legitimate or not? Whether the person involved in the process is of sound mind or is under the influence of the other person. In the present fact Eric was not in any kind of influence or pressure by Daniel, therefore Eric transferred the money by its own will as the gift to Daniel. Later, the breakup of the relationship does not include the clause of any consideration of the money to be transferred back to Eric.

There would have been difference in the circumstances if Daniel would have not taken the advice by Eric in the wrong concern, and have followed the same. Also, Eric tried to help Daniel in every possible way yet there was no contract in between them. After the argument Daniel did not ask Eric to transfer of help financially it was Eric’s decision in good faith to help and provide financial help to Daniel. The difference would have also been if Daniel would have understood the concern of meeting the business advisor and have understood the business plan and model for the establishment of the business.

Therefore, the misunderstanding of the fact to meet the business advisor gave rise to the argument in between the couples and also became the reason for the end of their relationship. Eric wanted to help Daniel in the way of good faith and good concise, which was seen after the argument when Eric transferred the amount in the back account of Danial, and by which the intentions of Eric were cleared to not to offend Daniel regarding the fresh startup of the business.

Conclusion

The above mention facts and circumstances concludes that there was no binding contract between Eric and Daniel regarding transfer of the amount, therefore Daniel is not liable to pay the transferred amount back to Eric. The amount transferred or any kind of property transferred in the light of gift also does not carry any return back policy and no consideration from the side of donee. Also, there was no influence from the side of Daniel to provide any financial help by Eric. The gift is kind of a promise set by the donor towards donee with consent and mutual consideration, moreover the amount transferred even after the argument was all with the will and consideration of Eric to transfer the amount to Daniel in good faith and good concise. The transfer of the property, the amount made by Eric is therefore valid and do not violate any law under the Contract Act and Daniel is not liable to return the amount to Eric.

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