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Ugent help with Contract Question!!

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    • Thread Starter

    Hi, i desperately need help with how to structure this question. I know it's consideration but I don't know to write 1800 word essay for it.

    "In February 2012 Mr Lucan leased a small factory on the Fairbridge industrial estate from a company called London Properties Ltd (LPL). He took a 10 year lease for a rental of £72,000 per year, payable by instalments of £6,000 per month. Mr Lucan made office furniture and for a while business was good.

    However, in February 2014 one of Mr Lucan’s major customer’s went out of business and another customer, Furniture Globe, moved to another supplier.

    Following his accountant’s advice, Mr Lucan approached LPL in April 2014, explaining that he was in financial difficulties and asking whether the rent could be reduced. LPL had a number of properties vacant at the time and after some negotiation they agreed that the rental could be reduced to £4,000 per month until things improved. Once their agreement had been made, Mr Lucan decided to rationalize his business and to streamline his manufacturing process.

    He borrowed some money from his father in law and hired a firm called Netofit to re-organise the factory floor and install new machinery for the sum of £10,000. Half way through the work, Netofit told Mr Lucan that they had underestimated the amount of work involved and that they required another £4,000 to complete the work. Mr Lucan was desperate to get the factory back into full production and therefore agreed to pay the extra money.

    Gradually his business started to pick up again and in March 2015 Mr Lucan won a huge contract to supply all the office furniture for one of the largest hotel corporations in the city of London.

    In June 2015 LPL were offered a lucrative development deal on Mr Lucan’s site. This led them to review their position. LPL wrote to Mr Lucan informing him of the following: (i) they will be introducing full rental charges from next month onwards, in accordance with the lease (ii) they are demanding the arrears in rental payments from April 2014

    Mr Lucan is insisting that the promises made at the April meeting are legally binding and he believes that he can continue to pay the reduced rent. Furthermore, he is steadfastly refusing to pay Netofit the extra £4,000 agreed and they are now threatening to sue him.

    Advise Mr Lucan whether LPL and Netofit can enforce these claims against him. (You are NOT expected to consider economic duress.)"
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