Hi, I'm working through a problem question in contract law but am stuck on one particular part of the question:
'Anne wishes to take her family on a boating holiday in England. Boating Ltd hires out boats for their customers to pilot on the river Flave; Boating Ltd also hires out small self-catering cabins on the banks of the river. Anne decides to hire a boat from Boating Ltd for one week from 1 July 2016. The cost is £500 for the week. She fills in and signs a form in Boating Ltd’s brochure to book the boat; at the end of the form are the words, ‘All contracts relating to the booking of boats and cabins are subject to our terms and conditions: please see reverse.’ She sends the completed form, together with a deposit of £250, to Boating Ltd, which acknowledges its receipt.
The terms and conditions on the reverse of the form include the following provisions:
‘(i) While Boating Ltd undertakes to endeavour to provide the boat or cabin which the customer has booked on the form overleaf, it cannot promise to do so. Where Boating Ltd is unable to provide the boat or cabin booked by the customer, it reserves the right to provide another boat or cabin instead.
(ii) A sum of one half of the full cost of hire is payable on booking by way of deposit. All remaining sums owed under this contract are payable strictly two weeks before the commencement of hire. Any sums left unpaid will attract an interest rate of 10% per day.’
Later, Boating Ltd finds that it has overbooked its boats and so on 10 June it writes to Anne, informing her that no boat is available, but that it will provide a cabin instead for the period of her holiday. Anne does not want a holiday in a cabin and purports to cancel her contract with Boating Ltd, claiming the return of her deposit. Anne cannot find another similar boating holiday in England for the period in question, but books one in France at a cost of £2,500. She and her family are nevertheless very disappointed since they had been looking forward to a holiday in England. Boating Ltd claims that she is liable to pay it £250 plus the interest on this sum as provided for by condition (ii) as from two weeks before l July.
General advice is appreciated but what I am most unsure about is what she can do about the £2500 she has spent on another holiday as a result of her dissatisfaction under the current contract. Thanks.
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Contract Law Problem Question watch
- Thread Starter
- 04-01-2017 19:10