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Contract Law Q - Please Help!!

Hi,

I am a first year Law student and have a coursework thing due in a few weeks which I am really stuck on. If I fail it means I fail the whole year and I am starting to panic! Ok, the problem is as follows...

Stoutbuild Ltd has competed a building job for a computing company. Both parties agreed a price before work commenced but problems aose which meant the original contract had to be modified and the computing company requested extra work which was not in original quotation. No written record of the changes were made or a price agreed. Although the computer company agrees some additional payment is justified it has objected to the sums charged.

I must negotiate a settlement of the dispute.

If anyone can give me any idea of the areas of law I need to include I will be soooo grateful. At first I thought it was Williams and Roffey but now I'm not so sure.

Sorry for the long post

Reply 1

Big_Dave

Consideration and contract privity, williams vs roffery bros and style vs myric i think are some decent cases studies for it not to sure on the exact names of the cases but im sure theree somet like that, christmas exams were a while back so cant quite remember em!

Reply 2

Kate987123

Thanks for your help, bit confused about what to say about contract privity? (Sorry to be a pain) Also, if there is consideration hwo do they decide how much the computing company have to pay? All I can find is a 'reasonable amount'!!

Thanks again

Reply 3

Big_Dave

Not to sure on contract privity but in the exam feedback they said that should of been mentioned best bet is to look at williams vs roffery bros thats pretty much the exact same case.

Stoutbuild have given consideration by completeing the extra work so they are entitled to the full ammount, also depends wether it was past consideration or the other cant quite remeber, look at promissary estoppel aswell.

Not to sure were contract provoty comes into but in the exam all the top marks talked about that aswell.

Im no expert only done a module of english contract law this term cos it was complusory on my degree, but the problem is pretty mcuh exactly the same as the one in the exam!

Reply 4

Big_Dave

Also you can argue that if economic duress was placed upon the computer company then the contract can is void.

So basically main points:-
-Wether consideration was given or not and the state of consideration
-Wether or not economic duress was placed upon the company ( like if they were to be fined for late completion etc and stoutbuild used the position to get more money)

Reply 5

Ethereal

I don't see how privity comes into this as I cannot see a third party.

If the computer company concedes it requested the extra work, I think you can argue a verbal contract exists. Stoutbuild have shown consideration as they have done the work.

Reasonable ammount - materials + labour? I'm sure from the original transaction it would be possible to work out what they originally charged for labour?

These are just common sense suggestions -it's a while since I did contract and my textbooks are hiding!

Reply 6

Big_Dave

Aye not to sure were it comes in either, our case study was slightly dfferent in that the original company ahd already been contracted to do work so the sub-contracter acted as the third party my mistake.

Ethereal is rihgt the only other thing to consider is wether stoutbuild exserted economic duress in order to obtain more money, for example if the computing company had deadlines to work to and needed the building work done so they could achieve these deadlines etc

Reply 7

Ethereal

If I'm honest, I'd say including privity might be counter productive. It would not be application of the correct law to your problem question. That is, of course, if you have stated your question verbatem in here?

Reply 8

Dwight67

You may find R v Brown 1993 [HL] relevant here. :suitd:

Reply 9

Kate987123

Yes, I have written the question pretty much exactly as I have it. Thanks for your responses. The max length is 7 pages so do you think I can fill up 7 pages mainly about consideration?

Erm in a word - NO

Dwight67

You may find R v Brown 1993 [HL] relevant here. :suitd:

I have a sneaky feeling this may be the sado-masochism case. If so, it's a criminal case and of no relevance here at all.

Reply 12

Kate987123

Lol, no I didn't think so either. I know from a tutor that I don't really have to discuss if the original contract was valid as it clearly is and the computing company are agreeing to pay something (so it is likely there was consideration - I think!) they just haven't agreed on how much, don't see how I can make the essay anywhere near 7 pages long?

If its any help, although it is a contract question it is for a module called Writing Skills, don't know if that is supposed to make a difference my answer

Maybe I should just give up now?!!

Reply 13

Ethereal

I'd suggest:

- You can assume a contract existed because the computer company concedes it owes money. However, for 1st year contract you still need to demonstrate it exists. Find legal authority that verbal contracts are binding.

- You make reference to needing to know the terms of the original contract ie were labour and parts billed seperatly?

- Look on westlaw/lexis for any cases where this has happened before.

- Formulate what is a "reasonable" ammount and argue for that - as early I'd suggest this would be somewhere in the region of Stonbuild's loss ie parts + reasonable rate for labour.

As for 7 pages?! Law is supposed to be concise!

I know it's not much - but hopefully this + comments from others will give you some direction.