[Harjotrkk]

Even I can’t remember the last time wrote and mailed a letter!

I understand your point

Thanks Mike

[Harjotrkk]

Sue offered to sell her hamster on 1 May. John received the offer on 2 May. On 4 May he mailed a letter accepting the offer which was received on the same day. On 3 May, unknown to John, Sue had written to John revoking the offer.

Hi Mike

For this question there is a binding contract on the 4th of May because that’s when the letter of acceptance was put through the postal system right? Also, will the postal rule always apply in acceptance of offers?

[Harjotrkk]

Perfect!

Thank you very much Mike

[Harjotrkk]

Q1 Following a written private order for 50 cases of brown ale, with 12 one pint bottles per case, Mr Ramsbottom finds that he has been sent the equivalent order in larger one litre bottles. His rejection of the entire consignment incurs additional cost to the supplier who commences legal action for breach of contract.

What is Mr Ramsbottom’s liability in contract law?

A. He is liable for breach of contract as repudiation is not possible the supplier’s breach of warranty
B. He is not liable as he was entitled to repudiate the contract for the breach of the condition that the goods must match the description
C. He is not liable as his purchase was not a consumer sale
D. He is liable for breach of contract as any packaging of goods is only a warranty and he did not have the right to repudiate it

Answer is B and mark scheme says – Failure to comply with conditions (one pint bottles) entitled Mr Ramsbottom to rescission and damages. Thus the supplier has no grounds for a claim against him.

Q2 Den, a shop owner, orders 144 half litre bottles of soft drink with 12 crates of 12 half litre bottles per crate. 144 half litre bottles are delivered but in six crates of 24 bottles per crate. Den rejects the whole consignment.

What is Den’s liability in contract law?

A. As this is not a consumer sale Den would not be protected by contract law
B. There has only been a breach of warranty. Den must pay for the goods and claim damages
C. Den is in breach of contract by rejecting the goods and is liable to pay damages
D. The goods delivered do not match the description. The supplier has breached a condition and Den is entitled to treat the contract as discharged

Answer is C and mark scheme says – A contract can be rescinded for breach of condition but not warranty. Den should not have rejected the goods and is therefore liable to pay the supplier for any damages suffered for having done so.

Hi Mike

Is goods matching their description a warranty or condition?

Secondly, I’m a little confused with why the outcome in these two questions are different? Could you please explain how you would go about analyzing these two questions as well?

[Harjotrkk]

Which of the following contracts could be enforced by an order of specific performance?

A. A contract with a minor
B. A contract of employment
C. A contract for the loan of money
D. A contract for the purchase of land

Hi Mike

For this question the answer is D, and the mark scheme says that A , B and C would be inequitable and/or unsupervisable.

Could you please explain what is meant by this and why D is the answer?

[Harjotrkk]

Dee and Eff are major shareholders in, and the directors of, the public company, Fan plc. For the year ended 30 April 20X5 Fan plc’s financial statements showed a loss of £2,000 for the year.

For the year ended 30 April 20X6 Fan plc made a profit of £3,000 and, due to a revaluation, the value of its land and buildings increased by £5,000.

Question
Task 1

Which of the following statements describe the profits available for distribution by a public limited company?

A.Accumulated realised profits
B.Accumulated realised and unrealised profits less accumulated unrealised losses
C.Net realised profits
D.Net realised profits less net unrealised losses

Hi Mike

For this question I’ve answered C but the mark scheme suggests D

I don’t understand why, could you please explain it to me

[Harjotrkk]

Yes it is

Both questions were well explained

Thanks Mike!

[Harjotrkk]

In January, Ami took over an old warehouse with the intention of opening an art gallery. As the warehouse had to be converted, Ami entered into a contract with Cis to do all the necessary painting. Cis was to be paid £5,000. Cis received an initial payment of £1,000 and agreed to have the work completed by 31 March.

At the end of February, Cis told Ami that she would not complete the work in time unless Ami agreed to increase her payment by a further £1,000. Ami agreed to ensure that the job was done on time.

On completion of the work on time, Ami refused to make the additional payment to Cis, beyond the original contractual price.

Question
Task 2

Indicate which, of the following are past consideration and which are not.

Past consideration / Not past consideration – Ami’s initial payment of £1,000
Past consideration / Not past consideration – Cis’s initial agreement to complete the work by 31 March
Past consideration / Not past consideration – The work that had been done by Cis at the end of February
Past consideration / Not past consideration – Ami’s agreement to pay the further £1,000

Hi Mike

I need some help understanding the meaning of past consideration.

Could you please explain to me which of these are past consideration and which of these are not. Thanks.

[Harjotrkk]

Yes

Thanks Mike

[Harjotrkk]

Yes much better

Thanks Mike

[Harjotrkk]

Which of the following may be arranged under “pre-pack” administration?

(1) Potential buyers for the sale of the company

(2) A sale price for the business

A.1 only
B.2 only
C.Neither 1 nor 2
D.Both 1 and 2

Hi Mike

For this question I answered D but the mark scheme suggests A and explains that A pre-packaged administration (“pre-pack”) sale is a pre-arranged sale of a business and its assets (not the company) on the commencement of administration.

Can you please explain what is the difference between selling a business and its assets VS selling a company?

[Harjotrkk]

I understand what you mean in the first paragraph of your explanation but not the 2nd paragraph.

Could you please explain it again?

[Harjotrkk]

I see how the answer can change in different situations

Thanks Mike

[Harjotrkk]

Fantastic

Thanks Mike!

[Harjotrkk]

Yes very good!

Thank you Mike

Also just want to confirm that the video lectures are valid for exams in the December 2025 sitting?

[Harjotrkk]

Hi Mike.

I wanted to ask how do you know what is ‘the correct minimum period of notice an employee is entitled to’, when the question gives you how long they have provided service for?

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