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• In 2020 Turner makes a written agreement with Huston, his former business assistant:

“I, Turner, in consideration of your help to me over the years, promise to pay your niece Angelica an annual stipend of £20,000.”

In 2021, Turner sends £20,000 to Angelica. In 2010 Angelica used the money to help buy a house with a 25 year mortgage, paying about £20,000 per year.

In 2022, Turner informs Huston and Angelica that he will no longer make any further payments on the agreement. Angelica now cannot afford her mortgage, and may lose her house.

Advise Angelica.

• Ben is in charge of car procurement for Clovis Ltd, a corporation. Ben goes to George, a salesman for Tenby Motors, and asks about the condition of a particular second-hand car.

George: “Trust me mate, the car is perfectly sound, you don’t need to examine it.”

Ben is sceptical, and examines the car. He finds what looks like damage on the bodywork, and decides to look for a different car elsewhere.

However, Ben after two weeks Ben is unable to find a suitable alternative. He returns to Tenby Motors and buys the car from George for £10,000. Ben signs a sales contract excluding all liability to Tenby Motors for any defects in the cars they sell.

A month later the car’s steering fails and the driver, a Clovis employee, is badly injured. Subsequent inspection reveals that the car was unroadworthy and dangerous when sold. The car is now worthless, and Clovis suffers a loss of £80,000 due to their employee’s injury.

Advise Clovis Ltd.

• In June 2021, Clovis Ltd hire Mandrake Builders to build an office in London for £2.5 million, all payable upon completion on or before 1^st May 2022. Clovis impress upon Mandrake that it is vital the building be ready at this time, or else they will lose worth £18 million.

On 10^th March 2022 Mandrake abandon the building work to take up a more lucrative contract worth £5 million, leaving the office 90% completed, and advise Clovis to find another builder. Clovis in desperation hire another building firm, Nightshade, to complete the work for £1 million. The building is completed by 1^st May 2022. However, Nightshade’s builders are unfamiliar with the specialist construction materials used in the building, causing fire in the premises that renders it unfit for habitation. Clovis are unable to use the building until further work has been done, completed on 10^th July 2022. In consequence they lose the special contract (£18 million) as well as losing £2 million of normal business revenues 1^st May-10^th July 2022.

On 6^th July 2022, Mandrake builders inform Clovis Ltd that they require payment for work done, and suggest that 90% of the agreed £2.5 million would be fair.

Advise Clovis Ltd.

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