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Contract Law... help please!

Good evening,
I'm an pg student from France, and I have this "legal exercise" to be solved. References detailed are required in relation of UK law.

The exercise is as follows:

"Two limited companies of equal financial strength have entered negotiations for the supply of services by one to the other. The customer company (A) wrote to the supplier company (B) at the outset of negotiations explaining that A would only be willing to deal with B on the terms of a formal contract in writing. Nevertheless, because the parties could not agree certain terms including provision for liquidated damages, arbitration clauses and delivery schedules, the formal contract (a draft of which was prepared and sent to B by A) was never completed. Meanwhile, and because of the urgent need for supplies to commence, B at the request of A has supplied about 70% of the proposed contract quota. A has paid one interim invoice (price was not an issue) supplied by B for about 20% of the quota. In making payment, A stated in writing that payment was made notwithstanding its position that no contract existed. The parties have now fallen out and the issue has arisen as to whether either A or B are able to assert a contractual relationship despite the absence of a formal written contract. Explain with reference to case law the factors which would determine whether or not a contract exists and what the alternative position would be if there has been no contract. Why would it matter?"

Can you help me? Thanks

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