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Help with Contract Law question

Hi Guys! I am a new member here, and have been browsing the forums for a long time now, but just signed up. I am a first year year LLB student and am facing difficulties with a particular contract law problem question, and would greatly appreciate if someone could help me with solving it with relevant cases/case law.

Erin is the owner of a small business making teacups. She made a contract to supply Ffion Co with teacups for 2 years. The contract was very important to Erin’s business as she saw it as the key to expansion. She had to arrange for her teacups to be delivered to Ffion Co and she made a contract with Gareth for those deliveries to be made for the 2 years of her contract with Ffion Co. After 2 months Gareth realised that the contract with Erin had been seriously under-priced and that he would lose money on it. Erin was notified that unless she agreed to increase the price Gareth would make no further deliveries for her. She was told that his driver would bring a new agreement and that unless she signed it, no collection and delivery of her goods would occur. Erin was incensed by the idea of having to pay more simply for the service which she already a contract for. She telephoned numerous other delivery firms but could not find any who could make her deliveries to Ffion Co on schedule. When Gareth’s driver arrived, she signed the new agreement with Gareth, at the increased price.
Advise Erin.
Would your answer differ if the new agreement with Gareth contained additional insurance in relation to the goods carried which had not been present in the original agreement?

Any helpful responses will be greatly appreciated. :smile:

Reply 1

Audrey18

@sk8erboie

watch this video. it teaches you how to answer contract law questions like the one you posted.

Reply 2

sk8erboie

Hi Audrey!

You've helped me a great deal, Thank you! I am still however a bit confused with the additional question at the bottom: 'Would your answer differ if the new agreement with Gareth contained additional insurance in relation to the goods carried which had not been present in the original agreement?'

If I go by what the video suggests, then the 1st additional practical benefit is that all the deliveries would be made in time, and she would stay true to her contract with Ffion Co. So, if the contract contained the mentioned additional insurance which not there in the original agreement, would that also count as an additional practical benefit?

Again, thanks for taking the time to help!

Original post by Audrey18