contract law scenario essay

Contract Law: The Case Study Essay

A contract is a mutual agreement of obligation between two people or parties reaching consent. In most cases, such commitments are enforced by the law. The arrangement involves one side making an offer, which the other party accepts. A contract consists of such elements as offer and acceptance, appropriate consideration, and legality (Eisenberg, 2018). The parties involved should also have the contractual capacity to commit to the pact. Applying the law in contracting means that there are consequences if any participant forfeits the rules pertaining to the engagement. Therefore, breach of contract necessitates legal measures for failing to honor the deal or hindering the execution of the promise by the other party. This negligence is a case of punitive damage for which the complainant requires compensation for money and time wastage.

The scenario presented involves two individuals, Johnny, who is not a merchant under the Uniform Commercial Code, and his neighbor Mark, from whom he offers to buy a car for $30,000. The latter requires some time to consider the offer to which Johnny agrees and puts down in writing that his proposition is going to remain open for fourteen days. After a week, Johnny sees another car that fascinates him, buys it and informs Mark of his intention to revoke the initial offer. In response, Mark insists that Johnny’s proposal was in writing and still holds it. Johnny apologizes, saying he cannot keep the agreement but promises to give mark $10,000 for the assistance that he had received from him in the previous year around the house. Appeased, Mark accepts only for Johnny to annul his second pledge after a week. The former decides to sue Johnny for breach of contract on the two commitments, buying the car and the $10,000 offer.

There was a valid contract between the two, but Johnny dissipated both Marks’s time and money. He Hastily offers to buy the car instead of informing him that he hasn’t made a final decision and needs to check more cars before settling on one. Johnny also made the mistake of writing down his promise to Mark. Purchasing a car requires a lot of research and inquiries instead of choosing the first option due to the availability of more varieties that might even be cheaper in the market. After being approached by Mark, Johnny should have told him that he had not made a final decision because he still wanted to look around; therefore, he was unwilling to commit. The promising note written by Johnny caused the car to be withheld from other customers willing to purchase it. Mark, the car owner, had the opportunity to sell the machine, but he had the integrity to hold it. Johnny’s actions concerning the car are wrong, and he deserves to pay for them.

There is evidence of an oral contract between Mark and Johnny, although it is related to the first agreement, which Johnny also broke. He acknowledges Mark’s help on his property and offers to compensate him, making the latter cancel his initial disappointment on the car contract. This agreement makes Johnny legally liable to atone for all the words he fails to honor.

Breach of a contract is concluded when a party involved fails to perform their role and doesn’t give a valid excuse. In this view, the elements of a contract are not fully satisfied; therefore, Mark has an entitlement to take legal action against Johnny (Luntz et al., 2017). Having kept his part of the agreement, Mark deserves compensation for indemnity.

Eisenberg, M. A. (2018). The Theory of Efficient Breach. In Foundational principles of contract law . Oxford University Press.

Luntz, H., Hambly, D., Burns, K., Dietrich, J., Foster, N., Harder, S., & Grant, G. (2017). Torts: Cases and commentary ( 8 th ed.). LexisNexis Butterworths.

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A-Level Law: Contract Law Starter Scenario + Model + Plan (Offer and Acceptance, Formation)

Subject: Law and legal studies

Age range: 16+

Resource type: Assessment and revision

Last updated

27 October 2022

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Essay Topic: Formation Essay Style: Scenario Marks: 25

This is a starter essay to help students who are just starting to learn contract law. It is a very simple offer and acceptance scenario that can be set early into studying contract law.

This is a scenario style question on offer and acceptance (contract formation). This is designed for the Eduqas Paper 2, Substantive Law in Practice exam.

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Home — Essay Samples — Law, Crime & Punishment — Contract Law — The Contract Law: The Case of Jim, Laura, and the Automobile Purchase

The Contract Law: The Case of Jim, Laura, and The Automobile Purchase

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Updated: 29 March, 2024

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The essentials of a legally binding contract, analysis of the automobile purchase agreement, the legal standing of the oral agreement.

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Question: Problem question: Mary, a frail but mentally sound 87-year old woman, is in the front garden of her old weatherboard home. Duncan, a big man who was heavily tattooed and wearing leathers, parks his motorbike outside her garden and strikes up a conversation with Mary. He told Mary that: “I am a licensed painter and I could paint the exterior of your house for a good price – $8000”. Mary obviously felt intimidated by Duncan and hastily agreed. The next day Duncan arrived and over the next two days painted her house. During this time Mary discovered from her daughter’s inquiries that had Mary received competitive quotes for the painting work, the going rate for painting her house was about $4000. Her daughter also discovered that Duncan’s registration as a licensed painter had lapsed two weeks agobecause he had forgotten to pay the renewal fee. The job is now complete and Duncan has asked Mary for $8000. Is Mary contractually obligated to pay Duncan the $8000? In your answer, refer to the general law of contract only. Do not refer to any statute law. Administrators comment: This coursework was completed as part of an LLB Law degree programme outside of the UK. (Australia - Masters year 1) It has been added to the lawcoursework.com database due to it’s high quality. Generally speaking only work completed within UK Law courses is accepted.

Answer: ISSUE The issue to be resolved in this case is whether or not Mary is contractually obliged to pay $8,000 to Duncan for painting her house. Specifically, are there circumstances which may...

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Details: - Mark: 90% | Course: Contract Law | Year: 1st | Words: 723 | References: Yes | Date written: January, 2014 | Date submitted: February 19, 2014 | Coursework ID: 836

Question: Problem question (Part 2): Adam says to his work colleague Colin: ‘if you drive my pet Doberman, Brutus, to Sydney I will pay you $3000’. Colin says nothing. Three days later he drove Brutus to Sydney. Brutus became very car sick during the trip because of Colin’s erratic driving. (Brutus had never been car sick before on long drives.) On arrival in Sydney Brutus was so dehydrated from car sickness that he had to be taken to an animal hospital. This required Adam to pay $1000 in veterinary expenses. Adam refuses to pay Colin $3000. (ii) Assuming that a contract has been formed, has it been breached? If so, what remedies arise? (5 marks) Administrators comment: This coursework was completed as part of an LLB Law degree programme outside of the UK. (Australia) It has been added to the lawcoursework.com database due to it’s high quality. Generally speaking only work completed within UK Law courses is accepted.

Answer: BREACH OF CONTRACT ISSUE Given that the contract is valid between Adam and Colin, has the contract been breached? Specifically, are there implied terms in their contract and has it been breached?...

Details: - Mark: 89% | Course: Contract Law | Year: 1st | Words: 440 | References: Yes | Date written: January, 2014 | Date submitted: February 19, 2014 | Coursework ID: 838

Question: Problem question (Part 1): Adam says to his work colleague Colin: ‘if you drive my pet Doberman, Brutus, to Sydney I will pay you $3000’. Colin says nothing. Three days later he drove Brutus to Sydney. Brutus became very car sick during the trip because of Colin’s erratic driving. (Brutus had never been car sick before on long drives.) On arrival in Sydney Brutus was so dehydrated from car sickness that he had to be taken to an animal hospital. This required Adam to pay $1000 in veterinary expenses. Adam refuses to pay Colin $3000. (i) Has any contract been formed here? If so how was it formed and what are its terms? If not, explain why no contract has been formed. Administrators comment: This coursework was completed as part of an LLB Law degree programme outside of the UK. (Australia - Masters year 1) It has been added to the lawcoursework.com database due to it’s high quality. Generally speaking only work completed within UK Law courses is accepted.

Answer: ISSUE The issues to be determined in this case study is whether or not there is a valid contract between the Adam and Colin. The specific issue to be dealt with is...

Details: - Mark: 88% | Course: Contract Law | Year: 1st | Words: 979 | References: Yes | Date written: January, 2014 | Date submitted: February 19, 2014 | Coursework ID: 837

Question: TMA 03 The Law reform (frustrated contract) Act 1943 has addressed the inadequacy of common law when dealing with the apportionment of loss between parties. Evaluate this statement. Mark 75%, W202 Contract law and tort law

Answer: To evaluate this statement, we need to look at what is a frustrated contract and what are accepted as frustrations to the contract. Also, look at the common law that was used...

Details: - Mark: 75% | Course: Contract Law | Year: 2nd/3rd | Words: 2484 | References: Yes | Date written: December, 2016 | Date submitted: March 08, 2017 | Coursework ID: 1007

Question: Jesse is considering buying his aunt Karen’s house as an investment. During the negotiations, Karen states, “This house is worth £200,000 and I’ve had two separate valuations from estate agents verifying that, but since I love you so much I’ll sell it to you for £180,000.” Karen has not received any valuations from estate agents and the house is worth only £120,000. Jesse buys the house for £180,000. Two weeks after Jesse has completed the sale and moved into the house, he discovers that Karen did not receive any valuations from estate agents. The same week, Jesse discovers that the value of the house has been reduced to £80,000 due to serious damage caused by the collapse of a supporting wall. At this point, a buyer offers £80,000 for the house. Jesse does not sell the house until three months later, when Jesse only receives £75,000 for the house because of a general fall of the property market. Advise Jesse.

Answer: In relation to Jesse’s current situation, the preliminary issue we must identify before preceding to look at other issues arising from this case, is whether there was an intention to be legally...

Details: - Mark: 75% | Course: Contract Law | Year: 1st | Words: 2950 | References: Yes | Date written: January, 2014 | Date submitted: February 18, 2015 | Coursework ID: 906

Question: 1st YEAR - CONTRACT LAW - CASE STUDY Bigstore Furniture Ltd (“Bigstore”) is a retailer of household furniture. The company announced its summer sale on 1 July 2009 by placing the following advertisement in several national daily newspapers in the UK. BIGSTORE’S SUMMER MEGASALE! Prices cut by up to 70%! Special offer! Anyone purchasing an Italia leather three-seater sofa by cash or credit card at the reduced price of £750 will receive an Italia leather two-seater sofa priced at £500 in the sale absolutely free of charge! This offer is available at all our stores until 31st August 2009. (The advertisement concluded by listing in small print all the company’s stores throughout the country.) On 5 August 2009 Susan took a copy of the advertisement with her and called at her local Bigstore to inspect the Italia sofas. She spoke to Ben, the Sales Manager, and told him that she had decided to purchase the sofas subject to first talking this over with her husband. Ben told Susan that the company only had a limited number of two-seaters so it was agreed that she would leave £100 in return for his agreement to hold the sofas for 48 hours. Ben told her that he would deduct the £100 from the purchase price if Susan went ahead with the purchase within that time period. On 7 August 2009 Susan called at the store to purchase the sofas and spoke to Ben who was very apologetic but explained that his staff had forgotten to reserve the sofas for her. He explained that in any event the two-seaters were “subject to availability” (as stated in various notices around the store), and the company had now run out of them. Ben also said that “…obviously the two-seaters were a free gift and were subject to availability.” He pointed out that the Italia three-seater sofa was still available but the price had now gone back up to £2,500. By reference to case law and statute or your own examples where appropriate: (a) Explain the elements of a unilateral offer and how such an offer may be accepted. (b) Explain whether the advert amounts to an offer or an invitation to treat in respect of (i) the three-seater sofas; (ii) the two-seater sofas (c) Explain with reasons what Susan purchased by paying GBP 100 on 5 August 2009. Was Susan entitled to have the GBP 100 deducted from the purchase price even if Ben had not agreed to do so? (d) Explain whether those who purchased a three-seater sofa were contractually entitled to receive a two-seater as well or whether Ben was correct in stating “obviously the two-seaters were a free gift…..” (e) Explain with reasons whether Bigstore has acted in breach of contract despite the notices which state that the two-seaters were “subject to availability"?

Answer: Whereas normally a valid agreement should comprise of offer and acceptance, with advertisements the general rule is that they are not offers but statements inviting further negotiations or invitations to treat with...

Details: - Mark: 75% | Course: Contract Law | Year: 1st | Words: 2189 | References: Yes | Date written: March, 2009 | Date submitted: December 16, 2009 | Coursework ID: 552

Question: Explain the differences between ‘duress’ and ‘undue influence’. Do both categories together amount to a law against unconscionable contracts?

Answer: Duress and undue influence are connected, in that they both deal with a state of affairs in which a person enters into a contract when, if left to his or her own...

Details: - Mark: 74% | Course: Contract Law | Year: 1st | Words: 1706 | References: Yes | Date written: March, 2009 | Date submitted: October 19, 2010 | Coursework ID: 799

Question: CONTRACT LAW CASE STUDY / SCENARIO TASK 1 Mrs. Turner has decided to start her own business running a private day nursery. It is necessary for her to find appropriate premises. She sees a detached house, which would be appropriate, on the market for £200.000. After having viewed the property she decides to make a bid for the property for £150,000. The sellers state clearly however that they will only accept £180,000. Mrs. Turner then sees another property on the market for £250,000. She offers the asking price for this and it is accepted 'subject to contract.' However a week later the sellers of the first property contact Mrs. Turner again stating that they have reconsidered are now happy to accept her bid for £150,000. Your supervisor has requested that you research the relevant issues and compile a report for her attention which, outlines your findings. TASK 2 Mrs. Turner has now purchased a suitable property and is now purchasing the necessary items required to run her nursery. She looks on a website and sees cots and high chairs advertised for sale by a company named Babies R Us, on the 1st October 2003, requesting twenty cots and twenty high chairs, requesting a reply by the 21st November 2003. She received a reply by post, confirming the order, on the 1st December 2003. This was postmarked 20th November. However on the 30th November, Mrs. Turner had assumed that Babies R Us were unlikely to reply and therefore, entered into a contract with a rival company. Mrs. Turner has made an appointment to see you to gain advice relating to the above problem. Equally, she would appreciate some advice relating to the formation of contracts by e-mail. TASK 3 Mrs. Turner's nursery has now opened and has recruited well. She is concerned as to the different types of liabilities, which she may be affected by during the course of her business and would appreciate it if you could write to her regarding this. Explain the different types of liabilities and along with examples.

Answer: To establish whether or not Mrs Turner has entered into two contracts first off all we have to look at what makes a contract and what type of offer was made to...

Details: - Mark: 74% | Course: Contract Law | Year: 1st | Words: 3247 | References: Yes | Date written: October, 2007 | Date submitted: April 18, 2009 | Coursework ID: 471

Question: With reference to the scenario below, critically discuss the importance of instant and electronic communications in contract law and how this may affect the “postal rule”, if at all. You must answer the following question: Andre is a self-employed kitchen designer who deals mainly in high specification kitchens aimed at the booming home catering market. He has worked for a number of competitors from the Northern Irish Bake-In Show and the Masterclass Chef television programme and recently his firm fitted a kitchen for the international winner of “Who would eat with me”. He has a fairly large business employing several staff. He has recently acquired a consignment of hand-cut maple wood and knows of several potential purchasers who would compete with one another to buy a handmade kitchen using this wood. On 2nd May he wrote to Jamie in the following terms: "I have just taken delivery of hand-cut maple wood sufficient for one bespoke kitchen and can offer it to my clients for the sum of £31,500. If you are interested please reply by return of post." He sent the same letter to Gino and Mary. At 2.15 p.m. on 3rd May, by first class post, Jamie replied, "In cash I could only give you £20,500 for the kitchen, but if you will accept this, I will have my next television show filmed in the kitchen and mention your name. For this, I would do a top notch product placement mention for you." Just as he was leaving his office that evening, Jamie received a very good offer to film his next show in a local school kitchen. In consequence, he stayed on late and at 7.20 p.m. he sent a FAX to Andre which read, "Disregard letter, I will definitely accept your offer of £31,500 for the kitchen." This FAX message from Jamie was received on the machine in Andre’s general office but while it had been left on, it was not filled with paper and therefore no faxes were printed out. Mary has decided that she is now too old to change her kitchen and does not respond to the letter. However Gino is thinking of updating his home and emails Andre on 3rd May at 9.00 am saying “I accept, will call with you tomorrow to sign the formalities”. Unfortunately Andre has lost his internet connection due to a fault with his computer system and does not read this email until after Gino arrives to sign the contract as the business opens on the 4th May. But when Andre is faced with Gino and after reading the email he agrees to sell him the kitchen. It is when Andre goes to get the standard form contract for Gino to sign that he notices the fax machine is out of paper, he loads the paper tray, waits until the faxes are printed out and then at that point reads the fax from Jamie. Requirement With reference to the above scenario, critically discuss the importance of instant and electronic communications in contract law and how this may affect the “postal rule”, if at all.

Answer: There are generally four elements required to form a contract; offer and acceptance, certainty, an intention to create legal relations and consideration. In this scenario, the important issue, in terms of the...

Details: - Mark: 73% | Course: Contract Law | Year: 1st | Words: 1652 | References: Yes | Date written: March, 2014 | Date submitted: November 25, 2015 | Coursework ID: 938

Question: The City of Coventry decided, some time ago, to celebrate its long history with a parade and pageant through the streets of the town on May Day. The parade was to include a rather scantily dressed Lady Godiva, on horseback, as well as characters from the city’s more recent history. Martin, a local businessman, thought it would be a good idea to celebrate his wife Lesley’s birthday in style, so he booked a suite of rooms in the Royal Mercia Hotel for the party, overlooking the route which the parade was expected to take. It was agreed that the hotel would provide food and drink for the party. He paid a deposit of £500, making it clear that he wanted a room to see the procession. There had been a fair bit of agitation against the procession in the city, particularly form a group calling itself “Women Against Exploitation” who regarded the parade as outrageously sexist and called for it to be banned. Two days before it was due to take place, Coventry City Council bowed to pressure and called the entire event off. When Martin heard this, he called the Royal Mercia Hotel and said he was no longer interested in hiring the room. The hotel replied that as far as they were concerned the booking still stood and they would go ahead and provide the catering for Martin’s wife’s birthday as agreed. Martin and his guests did not attend on the day in question. Nevertheless the hotel sent him a bill. He counterclaimed for the return of his deposit. Miss Tessa Smith, who was employed for the day to play the part of Lady Godiva, is suing Coventry City Council for breach of contract. Advise Martin and Coventry City Council.

Answer: The frustration of a contract occurs where an uncontrolled external event, which is not influenced by either party, renders any further performance of the contract impossible (Taylor v Caldwell), or radically different...

Details: - Mark: 73% | Course: Contract Law | Year: 1st | Words: 2335 | References: Yes | Date written: November, 2009 | Date submitted: September 27, 2010 | Coursework ID: 619

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Essay: Contract law problem scenario

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Marcus v. Elsie: In this scenario, concerns past consideration, due to the promise of £300 Elsie made to Marcus after he repaired the smoking chimney, and later refused to pay him. The definition of consideration was established by Lord Lush CJ, where he portrayed consideration as ”some right, interest, profit or benefit, accruing to the one party, or some forbearance, detriment, loss or responsibility, given, suffered or undertaken by the other.’ Past consideration is not a good consideration, also there are exception to this rule ‘if the act done at the request of the promisor, the both aware that the previous performance was to be paid for by cash or conferment of a benefit, then a promise made subsequent to an act performed by the promisee will be enforceable.’ The fact of these scenario shows that there was promise of £300 made to Marcus for repairing the chimney problem by Elsie. Nevertheless, the promise was past, because Marcus had already done the work before Elsie made the promise which is not sufficient for consideration to be valid. In other hands, the work would have been a valid consideration, if Marcus had done the work at the Elsie’s request, because there was no request from Elsie that might led him to loss his claim. Also, it would have been a successful claim for Marcus, if they both understood the fact that the work would be paid for, but due to the absence of request and unclear understanding before the commencement of the work by Marcus, it might result to invalid consideration. Therefore, Marcus might not able to claim for £300 promise to him by Elsie, because he did the work out of the Elsie’s request and the court will not enforce it has a valid consideration, except if Elsie is willingly to pay him the £300. Rosie v. Safina Here concerns part payment of a debt, based on the fact that Safina was able to paid £5,000 out of £8,000, she owed to Marcus for fitting new bathroom in apple cottage and later request to accompany with her ruby diamond necklace in full satisfaction which Marcus agreed to and later desire to receive the balance. A part payment of a debt cannot be view has good consideration for a promise to release the debt in full. In other for the lesser payment of sum to be considered as good consideration, it must move from the promisor, the lesser sum must paid before the due date, it must paid with chattel, horse rather than money and the payment must be made in a different destination. In considering the fact of this scenario, it is clear that part payment of a debt was made, but, however, the request to pay the lesser amount in full satisfaction was made by the promisee, instead, of promisor. Therefore, if a request to pay lesser amount in discharge the full balance was not from the creditor’s request, it will not possible to constitute a good consideration, because there has to be a benefit to the creditor for accepting the lesser amount in full satisfaction of the whole debt. However, the payment has to be made before the due date, in other to consider has good satisfaction to forgo the whole balance. Apparently, there was no agreement on when the whole debt should be paid and Marcus did not request Safina to pay him a lesser amount in other to consider it has good consideration. But because there was no agreement in relation to the due date of the payment, Safina will likely pay the remaining balance despite of using her ruby diamond necklace has a request to Marcus. Also whether the money was paid in different destination, actually, the location of where the payment of £5,000 made did not stated in the fact and was unknown. However, Marcus can still sue for the full amount of the debt, because the promise by a creditor to accept a smaller amount in discharge of a larger amount is not binding. In other hands, the promise can become enforceable if assumable that Safina go beyond the existing obligation at the request of Marcus, by paying in kind or in different form, it can then consider has good consideration. Reference to this, Marcus might be successful in his claim due to the absence of the exception to the rule of part payment of a debt and the request of paying lesser amount, which is not in request of the creditor. Marcus v. Gray and Joan In this scenario, will are consider part payment of a debt, precisely to £30,000 paid to Marcus ought of £100,000 agreed has price for renovating Caldwell Court for Gray. Also, will are looking at part payment made by third party between Joan and Marcus, if whether it qualified to discharge the responsibility from Gray not to pay the remaining balance of £70,000. Having mention earlier in relation to part payment of debt that is not good by the court, except the debtor go beyond the existing obligation has the request of the promisor by paying kind or in different form. It therefore argued that, the payment of £30,000 paid to Marcus rather than £100,000 did not accordance with the principles lay down in Pinnel’s Case. Also the payment cannot constitute a valid consideration, because it was made out of promisor’s request and was not made with chattel rather than money or in a different location. Therefore Marcus has the right to receive the full payment, due to the absence request by him and there will be no benefit for him to receive the lesser amount in full satisfaction. Where a payment is made by third party, can it consider as sufficient to discharge the full balance? Actually, where someone making a payment consequently for releasing the obligation owed by another, this will constitute to a valid consideration because the current obligation to make a payment was not owed by the debtor, rather than the third party. In other hands, it cannot be considered as good consideration, because cheque is no longer considered as sufficient. Also the cheque of £35,000 send to Marcus can be consider has insufficient consideration, due to the statement of the letter that ”this is Joan’s the final offer” it was synonymous to economic duress and if Marcus failed to accept the letter, it might likely lose completely. In advising Marcus whether he could recover £300 promise him by Elsie, we most likely not succeeded, because it a past consideration which is not enforceable and if assuming that Marcus satisfied the exception to the rule, he would have successful no his claim. Marcus will likely recover his balance from Safina, because the rules in Pinnel’s Case was not present and there was no request for lesser payment from the creditor. However, the claim Marcus and Gray might recover, if only the letter send to Marcus was not accepted by him and he did not cash the money. But if presumably that Marcus cash the money, then Gray might likely not have to pay him anymore. Rosie v. Anthony and Victor In this is scenario, will are looking at misrepresentation, due to the Cassandra that Rosie bought at £500 from Anthony and taking the Cassandra home, Rosie notice that the Cassandra was very restless and brought a claim against Anthony in other to recover her money because he did not reveal the illness of the Cassandra to her. Misrepresentation is a false statement of fact which induces the representee to enter into a contract. In other to constitute an actionable misrepresentation, there must be a false statement of fact. It must not be a statement of opinion, must not be a statement of intention and must not be a statement of law. In other for Anthony to be liable for actionable misrepresentation, Rosie must prove that she had been induce to enter into the contract, because of untrue statement of existing or past certainty which is address to her by Anthony before or at the period of enter into the contract. Under the present situation in this scenario, it clearly shows that there was a contract between Rosie and Anthony. But, however, there was no statement between the parties that could be viewed as false statement of fact that can induce Rosie to enter into a contract, than when Anthony asked Rosie if she will take a looked at the Cassandra before buying it and Rosie replied him that the one that won ‘Crufts Dog Shows Last Year’ which cannot be classified as actionable misrepresentation or cause reliance. In other hands, there can be a misrepresentation, if only Rosie can prove that Anthony constitute an actionable misrepresentation due to his Silence, even though it is not amount a good misrepresentation. Nevertheless, this can only be done if Rosie shows that Anthony owe her a duty to disclose fact in relation to the Cassandra situation, which may influence her either to buying or not to buying the Cassandra. It can also be argued that there was a statement of opinion or law despite the fact of not constitute an actionable misrepresentation. But, however, Anthony have not say anything than asking Rosie a question. Nevertheless, Anthony should have liable for actionable misrepresentation, if only Rosie can prove under fiduciary relationship, exist where someone has set a trust in someone else, whereby that individual, having been conscious of such information, is under an obligation not to uncover details gained up from such a relationship. If these can be prove by Rosie, the court might probably takes a different approach in looking at the remedy that could available. In other hands if Rosie is not, her claim might likely lead to dismiss or look for other alternative remedy for Rosie. In relation to issues between Rosie and Victor, whether Rosie can brought a claim on Victor for failure to warned her relation to the side effect of the drug and whether she can claim for damage that she sustained due to Victor’s failure. This can amount to misrepresentation only, if Rosie can prove that the statement of Victor was a false statement of fact that induce her to buy the drug. On the fact of this scenario, the statement made by Victor seems to be insufficient to amount to misrepresentation, on the grounds that he was actually express his opinion base on the side effect that the drug might cause to the Cassandra. Notwithstanding, it is likely for Victor statement to be viewed as a statement of fact rather than opinion statement, because he was in right position to know how the drug ‘Braslim’ that he prescribed to Rosie work’s. Also, Victor statement could amount to actionable misrepresentation because, where the state of mind of the representor was saying something else instead of intention, he has made a misrepresentation of fact in the sight of the law, on the grounds that ”the statement of a man’s mind as much a fact as the state of his digestion.” Bowen LJ. As was expressed above , that Victor’s advice can be viewed as mere of opinion which cannot amount to representation of fact. It is held that where there is extraordinary fact for both parties to known, the statement made by one party and address to the next, it actually opinion statement; however where an opinion statement is made by the person who knows the truths vastly improved than the other one includes all the time a statement of material actuality. Remedy available for Victor is under section 2 (1) Misrepresentation Act 1967, a negligence misrepresentation is a statement made without sensible reason for faith in its truth. Unless Victor can demonstrate he had sensible grounds to accept the fact that the statement were valid. On the other hands, Rosie can demonstrate that a negligence misrepresentation was made to him by Victor, Rosie is might qualified for the remedy of putting the agreement aside or to claim the damages. Any suffered of loss is figured by tort measure.

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Νοn-Classical Paradigms in Contract Law

2018, Journal of advanced research in law and economics

In many regions of the world, scholars have renewed a discussion on the nature and properties of contracts as a legal phenomenon, leading to the emergence of so-called ‘non-classical theories of contract’: contract as a promise, relational contract, contract as a network etc. This article’s aim is to compare non-classical approaches to contract and check the possibility of creating a modern holistic theory of contract. This article’s methodology is based on the functional method, the use of which provides a comparative perspective, meaning that each of the explored approaches to the theory of contract should be studied in the context of its causes and problems it solves. The article systematizes problems solved by non-classical theories of contracts and concludes that the development of a new theory means the appearance of a new solution, not only for the problem for which it was designed but also for some others from the list. No theory solves all the problems of contract law. Numerous theories of the 20th and 21st centuries have shown the directions, in which it is necessary to carry out research and to seek approaches whose combinations and mutual critical evaluations will allow the formation of a met theory of contract law, the further development of which can lead to a dominant paradigm shift in response to the emergence of an integrative legal theory of contract viewed in a holistic manner as a multifaceted phenomenon.

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The transition from the rule of law to the constitutional state has resulted in the neo-constitutionalist state model guided by the protection of fundamental rights. In effect, civil law and its traditional institutions have been conditioned by the public intervention in private relations. The constitutionalization of civil law presupposes the existential dimension as the core of civil law, which is now concerned with the values emanated from the being in the political community. Therefore, it is necessary to reformulate the concept of subject of rights on the road to a substantive equality as a legitimizing reason for civil law. The theory of contracts has responded to these impulses with a renewed theoretical basis and with the addition of new principles in the search for effective protection of the disadvantaged party and for achieving the ideal of justice in patrimonial legal situations.

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Comparative legal history is a fashionable new discipline which aims at a better understanding of the law's past by comparing similarities and differences of legal phenomena in two or more jurisdictions beyond the limits of national legal histories. Despite its popularity in Europe, it still lacks comparative projects that cover both Western and Eastern areas of the Continent, not least because the methodology of such comparison requires proper consideration and cannot be simply copied from comparative law or national legal histories. The present article evaluates the applicability of the dominant method of today's comparative law (the functional one) in the domain of the general contract law of the first codifications in the major jurisdictions of Continental Europe (Austria, France, Germany, Russia) during the 'long 19th century'. This subject matter is chosen by way of example as a 'legal cross-road' of legal concepts and models, more susceptible to changes, innovations, borrowings, and closely linked to social needs. In the main part of the article, it is argued that the adaptation of the functional method to the needs of comparison in legal history becomes plausible due to at least two factors. First, comparatists mitigated the rigid assumptions of the 'classical' functionalism of the 20th century (rejecting its privileged status and purely functional perception of law, irrebuttable presumptions of similarity and unification of compared legal systems etc.). Second, many legal historians, like the drafters of the first civil codes in Western and Eastern Europe, also believe that law is more than minimally connected to social problems and manifests itself primarily through its actual application. On the basis of such premises, the author of this article discusses potential benefits and limitations of researching general contract law in the selected jurisdictions with the functional method. At the preparatory (descriptive) stage, it can be useful to assure comparability of contract law in the selected civil codes, to identify omissions in the codified general rules on contracts, and to arrange legal provisions around practically relevant issues. At the stage of analysis, functionalism can be coupled with teleological interpretation of legal norms to enable us to understand better the link between the application of the legal rules, their legal purposes, and the practical social problems serving as tertium comparationis for all the compared jurisdictions. A sketch of such an analysis in the final part of the article allows to conclude that research with the help of the functional method narrows our perception of law as a cultural phenomenon and breaks the inner doctrinal logic, but in return, it offers a starting point for much needed dialogue of legal historians with a wider legal community.

European Review of Contract Law

Muriel Fabre-Magnan

Leonardo Auriema

This contribution starts out with the fundamental changes society and law have undergone since 200 years ago with the 'discovery of consensus' and asks the question whether at the turn of our millennium, we are living similarly in a period of fundamental change. In this context, the contribution asks the question about the future of contract law. It does so primarily for Europe. To answer this question, it is argued that both institutionally and in substance contract law is indeed undergoing fundamental change, starting only a few decades ago. Contract law has become in its dynamic aspects largely European, decreasingly national, and will become over the next few decades, in substance, method and style, even primarily European. It has become a law in which party autonomy and instruments of order and protection have become similarly important and this process will continue. Standard contract terms, consumer protection, anti-discrimination are only three key elements; the financial crisis will trigger further thinking. The aim is to discover an equilibrium in which the material freedom of all parties concerned is best furthered. The article then argues that a trend towards codification comes together with a trend not to consider the code as 'universal order' any longer, that a trend towards generalisation comes together with a trend to differentiate more even in a general part of contract law: between different types of contract partners, different types of groups of contracts (spot contracts and long-term contracts), and different paradigms for the formation of contracts. The article concludes with an examination of some core areas where major steps of modernisation have been taken lately and it forecasts that contract law will be more international, interdisciplinary, more interested in the rule-setting process, more market and business oriented. In short it predicts that a similar discussion to that found within debates about corporate governance will develop for contract governance on a European level. Résumé: Cette contribution évoque tout d'abord les changements fondamentaux que la société et le droit ont connus depuis 200 ans avec la " découverte du consentement " et elle soulève la question de savoir si, au tournant de notre millénaire, nous sommes également en train de vivre une période de changement fondamental. Dans ce contexte, cette contribution soulève la question de l'avenir du droit des contrats. Elle le fait principalement par rapport à l'Europe. Pour répondre à cette question, il est soutenu qu'à la fois institutionnellement et substantiellement, le droit des contrats est effectivement en train de connaître un changement fondamental, qui a commencé seulement il y a quelques dizaines d'années. Le droit des contrats est devenu dans ses aspects dynamiques largement européen, de moins en moins national, et il deviendra même, dans les prochaines décennies, essentiellement européen en substance, méthode et style. Il est devenu un droit dans lequel l'autonomie de la volonté et les

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As Serbia is on the verge of reforming its law of obligations, it seems interesting to consider the implications of such reform from a comparative perspective. In line with the theme of this year’s Kopaonik School of Natural Law, this paper endorses a theoretical approach. It showcases the possible, yet complex links that exist between contract law and social contract theory by building on the work of Lyuben Dikov—an established Bulgarian authority prior to communism. Although the social contract is a rational concept and not an historical event, the prominence of particular ideas about governance in a jurisdiction, especially at the time key principles of contract were moulded, may provide insights regarding the function that has been attributed to contract law. Then, the paper examines the ‘social contracts’ embedded in the contract laws of two jurisdictions, which have different paths of historical and social development—England and Bulgaria, to provide concrete examples of the usefulness of Dikov’s theory as a lens of analysis of contract law and to highlight why contract law is not merely a set of technical rules, but indeed forms part of a jurisdiction’s social model. Hence it seems relevant to encourage debate on the ‘social contract’ embedded in the current proposal for a Serbian civil code as the issue has both conceptual and practical implications.

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Wilson v. City of Moscow

NATHAN DAVID WILSON , et al., Plaintiffs , v. CITY OF MOSCOW , et al., Defendants .

No. 3:22-cv-00421-BLW

United States District Court, D. Idaho

August 4, 2023

B LYNN WINMILL U.S. DISTRICT COURT JUDGE.

Before the Court is Defendants ' motion to dismiss ( Dkt 23 ) . [ 1 ] Having thoroughly considered the parties briefing and the relevant record, the Court finds oral argument unnecessary. For the reasons set forth below, the Court will grant in part and deny in part the motion to dismiss .

In the early morning on October 6, 2020 , the City of Moscow Police Department received a report that two individuals were placing stickers on signs and posts around the downtown Moscow area. Soon after, Moscow Police officers responded to the complaint and eventually confronted Rory Wilson and SJW, who are brothers . [ 2 ] Once the officers made contact with the brothers , they detained and questioned them about the stickers. [ 3 ] At some point during the interaction, one of the officers called the brothers ' parents, and their father , Nathan Wilson , soon after arrived on the scene. Eventually, Rory and SJW were released to Nathan without any citations being issued.

However at some point after the October 6, 2020 interaction, Rory and Nathan were charged with violating Moscow's No Posting on Fences or Poles ordinance, Moscow City Code § 10-1-22 . While the Wilsons claim that SJW was also charged with violating the statute , the City Defendants state that SJW was the subject of a juvenile proceeding. The Wilsons-who are members of the Christ Church-allege that these citations, and the events that occurred in October 2020 , were the result of bias and prejudice against the Wilsons for their political and religious views. Am. Compl. ¶ 56, Dkt. 8 .

In May 2022 , following a trial in Magistrate Court , a jury found Rory guilty of one count of placing a sign or flier on a pole without permission in violation of Moscow City Code § 10-1-22 . Id. , ¶ 58 . Following Rory's trial, the city dropped the charges against Nathan, and the county prosecutor dismissed the proceedings against SJW after he agreed to write an essay on civics. Id. , ¶¶ 57 , 58.

In March 2022 , Rory appealed his conviction to the Latah County District Court , which was the first step in his appeals process. On October 6, 2022 , with Rory's appeal pending, the Wilsons filed this suit in federal court . See Dkt. 1 . The Wilsons allege five causes of action under the Constitution and 42 U.S.C. § 1983 : (1) freedom of speech and retaliatory prosecution under the First Amendment , (2) equal protection and selective prosecution under the Fourteenth Amendment , (3) self-incrimination under the Fifth Amendment , (4) excessive force under the Fourth Amendment , and (5) overbreadth and vagueness under the First and Fourteenth Amendments . See Am. Compl. , Dkt. 8. [ 4 ] All the Wilsons' federal claims arise from the October 6, 2020 incident and the following prosecution , and seek injunctive and declaratory relief as well as damages. See generally id.

On January 30, 2023 , the City Defendants filed their motion to dismiss pursuant to Rule 12 (b) of the Federal Rules of Civil Procedure . See Def.s' Motion , Dkt. 23 . They argue that because Rory is still appealing his conviction, this Court should abstain from hearing any of the Wilsons' claims under Younger v. Harris , 401 U.S. 37, 43 ( 1971 ) . See Def.s' Br. at 5-7, Dkt. 23-1 . Alternatively, the City Defendants argue that if the Court elects not to abstain, the Wilsons' malicious and retaliatory prosecution claims are barred, their vagueness and First Amendment challenges to Moscow City Code § 10-1-22 fail as a matter of law, and, to the extent any claims are brought against Ms. Warner and Ms. Bautista in their individual capacity, they are barred by absolute immunity. Id . at 7-17 . Unsurprisingly, the Wilsons dispute each of the City Defendants ' claims. See Plf.s' Response , Dkt. 24 .

On April 6, 2023 , with the motion to dismiss pending, the City Defendants provided the Court with the Latah County District Court 's appellate opinion regarding Rory's state court conviction. See Dkt. 26. [ 5 ] The Honorable John C. Judge of Idaho's Second Judicial District affirmed the magistrate's decision, rejecting the entirety of Rory's challenges and denied him any relief. See id.

On May 4, 2023 , this Court ordered the parties to provide supplemental briefing regarding the status of Rory's state court proceeding. See May 24 MDO , Dkt. 27 . The Court further requested that the parties address how Rory's state court action affected the “dismissal of specific claims made by specific Plaintiffs .” Id . [ 6 ]

On May 9, 2023 , Rory filed a notice of appeal seeking review of the Latah County District Court 's April 4 appellate decision in the Idaho Supreme Court under Idaho Appellate Rule 11 (c) (10) . See Def.s' Suppl. Br. , Ex. A, Dkt. 29-1 . With the procedural backdrop set, the Court will address the motion to dismiss .

Federal Rule of Civil Procedure 8 (a) (2) requires only “a short and plain statement of the claim showing that the pleader is entitled to relief,” in order to “give the defendant fair notice of what the . . . claim is and the grounds upon which it rests.” Bell Atlantic Corp. v. Twombly , 550 U.S. 544, 555 ( 2007 ) . While a complaint attacked by a Rule 12 (b) (6) motion to dismiss “does not need detailed factual allegations,” it must set forth “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Id . at 555 . To survive a motion to dismiss , a complaint must contain sufficient factual matter, accepted as true, to “state a claim to relief that is plausible on its face.” Id . at 570 . A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged. Id . at 556 . The plausibility standard is not akin to a “probability requirement,” but it asks for more than a sheer possibility that a defendant has acted unlawfully. Id . Where a complaint pleads facts that are “merely consistent with” a defendant 's liability, it “stops short of the line between possibility and plausibility of ‘entitlement to relief.' ” Id . at 557 .

The Supreme Court identified two “working principles” that underlie Twombly in Ashcroft v. Iqbal , 556 U.S. 662, 678 ( 2009 ) . First, the court need not accept as true, legal conclusions that are couched as factual allegations. Id . Rule 8 does not “unlock the doors of discovery for a plaintiff armed with nothing more than conclusions.” Id. at 678-79 . Second, to survive a motion to dismiss , a complaint must state a plausible claim for relief. Id. at 679 . “Determining whether a complaint states a plausible claim for relief will . . . be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Id.

A. Younger Abstention

The crux of the Moscow City Defendants ' motion to dismiss is the abstention doctrine announced by the Supreme Court in Younger v. Harris , 401 U.S. 37, 43 ( 1971 ) . Younger and its progeny “espouse a strong federal policy against federal- court interference with pending state judicial proceedings absent extraordinary circumstances.” Middlesex Cnty. Ethics Comm. v Garden State Bar Assoc. , 457 U.S. 423, 431 ( 1982 ) . The Supreme Court has “identified two sources for this policy: the constraints of equity jurisdiction and the concern for comity in our federal system.” Gilbertson v. Albright , 381 F.3d 965, 970 ( 9th Cir. 2004 ) . “ Younger abstention permits federal courts to preserve respect for state functions such that the national government protects federal rights and interests in a way that will not unduly interfere with the legitimate activities of the States.” Herrera v. City of Palmdale , 918 F.3d 1037, 1043 ( 9th Cir. 2019 ) ( citations and internal quotations omitted ) .

Younger abstention is limited to three categories of cases : (1) ongoing state criminal prosecutions; (2) certain civil enforcement proceedings that are akin to criminal prosecutions; and (3) state civil proceedings that implicate a State's interest in enforcing the orders and judgments of its courts . Applied Underwriters, Inc. v. Lara , 37 F.4th 579, 588 ( 9th Cir. 2022 ) , cert. denied , 143 S.Ct. 748 ( 2023 ) ( citing Sprint Commc'ns, Inc. v. Jacobs , 571 U.S. 69, 78 ( 2013 ) ) ; ReadyLink Healthcare, Inc. v. State Comp. Ins. Fund , 754 F.3d 754, 759 ( 9th Cir. 2014 ) . If a state proceeding falls into one of the three categories, then “ Younger abstention is appropriate when: (1) there is an ongoing state judicial proceeding; (2) the proceeding implicates important state interests; (3) there is an adequate opportunity in the state proceedings to raise constitutional challenges; and (4) the requested relief seeks to enjoin or has the practical effect of enjoining the ongoing state judicial proceeding.” Page v. King , 932 F.3d 898, 901-02 ( 9th Cir. 2019 ) ( quoting Arevalo v. Hennessy , 882 F.3d 763, 765 ( 9th Cir. 2018 ) ) . However, “even if Younger abstention is appropriate, federal courts should not invoke it if there is a showing of bad faith, harassment, or some other extraordinary circumstance that would make abstention inappropriate.” Id. at 902 ( citations and internal quotations omitted ) .

In their motion, the City Defendants argue that because Rory has elected to appeal his conviction, this Court should dismiss all the Wilsons' claims because “ [t] here is no way this court could realistically consider [the Wilsons'] claims without also ruling on the validity of Rory's state court conviction [.] ” See Def.s' Br. at 7, Dkt. 23-1 .

Conversely the Wilsons present four arguments as to why the Court should reject applying Y ...

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Higher for Longer After All? Investors See Fed Rates Falling More Slowly.

Investors went into 2024 expecting the Federal Reserve to cut rates sharply. Stubborn inflation and quick growth call that into question.

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By Jeanna Smialek

Investors were betting big on Federal Reserve rate cuts at the start of 2024, wagering that central bankers would lower interest rates to around 4 percent by the end of the year. But after months of stubborn inflation and strong economic growth, the outlook is starting to look much less dramatic.

Market pricing now suggests that rates will end the year in the neighborhood of 4.75 percent. That would mean Fed officials had cut rates two or three times from their current 5.3 percent.

Policymakers are trying to strike a delicate balance as they contemplate how to respond to the economic moment. Central bankers do not want to risk tanking the job market and causing a recession by keeping interest rates too high for too long. But they also want to avoid cutting borrowing costs too early or too much, which could prod the economy to re-accelerate and inflation to take even firmer root. So far, officials have maintained their forecast for 2024 rate cuts while making it clear that they are in no hurry to lower them.

Here’s what policymakers are looking at as they think about what to do with interest rates, how the incoming data might reshape the path ahead, and what that will mean for markets and the economy.

What ‘higher for longer’ means.

When people say they expect rates to be “higher for longer,” they often mean one or both of two things. Sometimes, the phrase refers to the near term: The Fed might take longer to start cutting borrowing costs and proceed with those reductions more slowly this year. Other times, it means that interest rates will remain notably higher in the years to come than was normal in the decade leading up to the 2020 pandemic.

When it comes to 2024, top Fed officials have been very clear that they are primarily focused on what is happening with inflation as they debate when to lower interest rates. If policymakers believe that price increases are going to return to their 2 percent goal, they could feel comfortable cutting even in a strong economy.

When it comes to the longer term, Fed officials are likely to be more influenced by factors like labor force growth and productivity. If the economy has more momentum than it used to, perhaps because government infrastructure investment and new technologies like artificial intelligence are kicking growth into higher gear, it might be the case that rates need to stay a little bit higher to keep the economy operating on an even keel.

In an economy with sustained vigor, the rock-bottom interest rates that prevailed during the 2010s might prove too low. To use the economics term, the “neutral” rate setting that neither heats up nor cools down the economy might be higher than it was before Covid.

For 2024, sticky inflation is the concern.

A few Fed officials have argued recently that interest rates could remain higher this year than the central bank’s forecasts have suggested.

Policymakers projected in March that they were still likely to lower borrowing costs three times in 2024. But Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, suggested during a virtual event last week that he could imagine a scenario in which the Fed did not lower interest rates at all this year. And Raphael Bostic, the Atlanta Fed president, said he didn’t foresee a rate cut until November or December.

The caution comes after inflation — which came down steadily throughout 2023 — has moved sideways in recent months. And with new strains surfacing, including a pickup in gas prices, mild pressure on supply chains after a bridge collapse in Baltimore and housing price pressures that are taking longer than expected to fade from official data, there’s a risk that the stagnation could continue.

Still, many economists think that it is too early to fret about inflation’s stalling out. While price increases were quicker in January and February than many economists had expected, that could have owed partly to seasonal quirks, and it came after meaningful progress.

The Consumer Price Index inflation measure, which is set for release on Wednesday, is expected to cool to 3.7 percent in March after volatile food and fuel costs are stripped out. That is down from an annual reading of 3.8 percent in February and far below a 6.6 percent peak in 2022.

“Our view is that inflation is not getting stuck,” said Laura Rosner-Warburton, senior economist at MacroPolicy Perspectives. “Some areas are sticky, but I think they’re isolated.”

The recent inflation data do not “materially change the overall picture,” Jerome H. Powell, the Fed chair, said during a speech last week , even as he signaled that the Fed would be patient before cutting rates.

The longer run is also in focus.

Some economists — and, increasingly, investors — think that interest rates could stay higher in coming years than Fed officials have predicted. Central bankers forecast in March that rates will be down to 3.1 percent by the end of 2026, and 2.6 percent in the longer run.

William Dudley, a former president of the Federal Reserve Bank of New York, is among those who think that rates could remain more elevated. He noted that the economy had been expanding quickly despite high rates, suggesting that it can handle higher borrowing costs.

“If monetary policy is as tight as Chair Powell is arguing, then why is the economy still growing at a rapid pace?” Mr. Dudley said.

And Jamie Dimon, the chief executive of JPMorgan Chase, wrote in a shareholder letter this week that big societal changes — including the green transition, supply chain restructuring, rising health-care costs and increased military spending in response to geopolitical tensions — could “lead to stickier inflation and higher rates than markets expect.”

He said the bank was prepared for “a very broad range of interest rates, from 2 percent to 8 percent or even more.”

Borrowing would be pricier.

If the Fed does leave interest rates higher this year and in years to come, it will mean that the cheap mortgage rates like those that prevailed in the 2010s are not coming back. Likewise, credit card rates and other borrowing costs would most likely remain higher.

As long as inflation is not stuck, that could be a good sign: Superlow rates were an emergency tool that the Fed was using to try to revive a flailing economy. If they don’t come back because growth has more momentum, that would be a testament to a more robust economy.

But for would-be homeowners or entrepreneurs who have been waiting for the cost of borrowing to come down, that could provide limited comfort.

“If we are talking about interest rates that are higher for longer than consumers were expecting, I think consumers would be disappointed,” said Ernie Tedeschi, a research scholar at Yale Law School who recently left the White House’s Council of Economic Advisers.

Jeanna Smialek covers the Federal Reserve and the economy for The Times from Washington. More about Jeanna Smialek