I'm really struggling to work out what areas of law this contract problem question is directing me to discuss. Any help appreciated.
On February 1, Khare and Lahm bought a flat each in a new block of flats developed and sold by Moda Ltd. The contracts indicated that Khare and Lahm bought flats 3A and 3B respectively. An excited Khare told Moda's manager, Pilito, and Lahm that he would furnish flat 3A as quickly as possible. Lahm made no comment while Pilito replied 'Sounds alright so far as you are sure it is flat 3A. The flat was actually flat 3B as indicated later on its door when Moda put the flat numbers on the doors on 31 March.
Consider all the following alternative situations and advise Khare:
a) before moving into flat 3B on 31 March, Lahm did not request nor know of the furnishing carried out by Khare. Lahm has declined to swap flats with Khare and has refused to pay for the furnishing costs.
b) on 31 March Lahm agreed to pay Khare for the furnishing costs although Lahm did not request nor know of the furnishing prior to 31 March.
c) On 1 April, Lahm found out that the furnishing was about 75% finished at £15,000, and promised to pay Khare £20,000 if the furnishing was fully completed by 12 April. Khare finished the furnishing on 10 April. Lahm moved into flat 3B on 15 April and has refused to pay any amount to Khare.
help with a first year contract problem question please?
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