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Obligations Problem (essay) - need help understanding Watch

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    Hey guys,

    Was hoping somebody could help me with this essay. It's due on Friday, and I can't seem to understand it's central issues - asides from the issue of acceptance through post which, alone, I can't write 2000 words on! ANY help would be appreciated.

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    Jack wants to have a conservatory built onto his house. He writes to three builders, Bob, Ken and Andy, asking them to submit estimates. In the letters Jack sets down his specifications for the conservatory and, furthermore, states that he will accept the “most competitive” tender.

    Bob writes back saying that he will do the work for £10,000. Ken replies saying that he will charge £12,000 for the work. Andy never receives Jack’s letter because it was misaddressed by Jack. As luck would have it though, Andy writes to all the houses in Jack’s street offering to build conservatories, which happen to match Jack’s specifications, for £8,000.

    Having received the letters of all three builders, Jack hears from his neighbour, Barney, that Ken is an excellent builder. Jack accordingly contacts Ken to say that he will be employing him to do the building work.

    Work proceeds. Meanwhile, Jack, who has moved to his second home in Birmingham while the work is underway, is having cash flow problems. He writes to Ken to say that he may not be able to pay Ken the agreed price of £12,000. Jack proposes that he will pay £10,000 to Ken now, rather than the full amount which falls due upon completion of the work.

    When Ken receives Jack’s letter, he is inclined to accept Jack’s proposal as he cannot afford to run the risk of a costly legal action against Jack which may result in him recovering even less than the £10,000 offered. Ken accordingly writes a letter to Jack accepting the new terms. However, just as Ken has posted the letter, he says to himself, “Damn that stingy git! I’m not letting him rip me off.” He phones Jack immediately, saying, “You can stick your offer. I want the full £12,000 you owe me. You can rip up the letter which you’ll get from me in a couple of days. There’s no way I’ll let you cheat me out of £2,000.”

    Advise the parties. (Ignore any issue of duress here).

    Word limit: 2000 words

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    Thanks for the help!

    D
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    (Original post by darthpoopie)
    Hey guys,

    Was hoping somebody could help me with this essay. It's due on Friday, and I can't seem to understand it's central issues - asides from the issue of acceptance through post which, alone, I can't write 2000 words on! ANY help would be appreciated.

    ---

    Jack wants to have a conservatory built onto his house. He writes to three builders, Bob, Ken and Andy, asking them to submit estimates. In the letters Jack sets down his specifications for the conservatory and, furthermore, states that he will accept the “most competitive” tender.

    Bob writes back saying that he will do the work for £10,000. Ken replies saying that he will charge £12,000 for the work. Andy never receives Jack’s letter because it was misaddressed by Jack. As luck would have it though, Andy writes to all the houses in Jack’s street offering to build conservatories, which happen to match Jack’s specifications, for £8,000.

    Having received the letters of all three builders, Jack hears from his neighbour, Barney, that Ken is an excellent builder. Jack accordingly contacts Ken to say that he will be employing him to do the building work.

    Work proceeds. Meanwhile, Jack, who has moved to his second home in Birmingham while the work is underway, is having cash flow problems. He writes to Ken to say that he may not be able to pay Ken the agreed price of £12,000. Jack proposes that he will pay £10,000 to Ken now, rather than the full amount which falls due upon completion of the work.

    When Ken receives Jack’s letter, he is inclined to accept Jack’s proposal as he cannot afford to run the risk of a costly legal action against Jack which may result in him recovering even less than the £10,000 offered. Ken accordingly writes a letter to Jack accepting the new terms. However, just as Ken has posted the letter, he says to himself, “Damn that stingy git! I’m not letting him rip me off.” He phones Jack immediately, saying, “You can stick your offer. I want the full £12,000 you owe me. You can rip up the letter which you’ll get from me in a couple of days. There’s no way I’ll let you cheat me out of £2,000.”

    Advise the parties. (Ignore any issue of duress here).

    Word limit: 2000 words

    ---

    Thanks for the help!

    D
    There's a huge range of issues here, well beyond the postal acceptance issue.

    Start with the invitation for tenders. What is the typical rule with tenders? Are people who request tenders obliged to accept on of them? What are the exceptions? Does this instance fit any of the exceptions? What are the cases here?

    Who has made a tender? Remember that Jack's request for tenders is misaddressed--the postal rule does not apply to offers or invitations to treat.

    Then you need to consider the change of agreement from £12000 to £10000. That's an issue of consideration/alteration of bargain. Look at Williams v Roffey and Foakes v Beer. Don't forget to consider where these cases were decided. As you've realised, there might be an issue of revocation by a faster means, so you need to consider the postal rule as it applies to that.

    Remember you need to advise the parties--that means Ken, Andy, Bob, and Jack. Who has a cause of action against whom, and why?

    Hope that helps some!
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    (Original post by jjarvis)
    There's a huge range of issues here, well beyond the postal acceptance issue.

    Start with the invitation for tenders. What is the typical rule with tenders? Are people who request tenders obliged to accept on of them? What are the exceptions? Does this instance fit any of the exceptions? What are the cases here?

    Who has made a tender? Remember that Jack's request for tenders is misaddressed--the postal rule does not apply to offers or invitations to treat.

    Then you need to consider the change of agreement from £12000 to £10000. That's an issue of consideration/alteration of bargain. Look at Williams v Roffey and Foakes v Beer. Don't forget to consider where these cases were decided. As you've realised, there might be an issue of revocation by a faster means, so you need to consider the postal rule as it applies to that.

    Remember you need to advise the parties--that means Ken, Andy, Bob, and Jack. Who has a cause of action against whom, and why?

    Hope that helps some!
    Thank you so much! That really helped

    D
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    (Original post by darthpoopie)
    Thank you so much! That really helped

    D
    No worries! Happy to be of assistance.
 
 
 
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