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Sunday, 11 June 2017

Business Law Questions: Consideration and Intention to Create Legal Relations

1.     John returns Sarah’s lost Siamese cat “Sasha”. Sarah has advertised using a poster a reward of £100 but John had not seen the advertisement. She mentions the reward to him and promises to pay him at the end of the week. When John returns for the reward she refuses to pay.  Explain the legal position.

2.     Roisin, a student (and family friend) is asked by Jenna if she will tutor her daughter for her A-level History exam.  Rosin will be required to go to Jenna’s house once a week and tutor her and in exchange she will be paid £300, an average of £20 per hour. 

After 2 weeks Jenna says that she is having some financial difficulty and as a result cannot afford to pay the £20 agreed. She asks Roisin if she will accept £15 instead.  Roisin is not keen, but needs the money so eventually agrees.
A further 2 weeks later Roisin says that the situation is not working as she is having to get a bus there and it is costing too much.  Jenna agrees to pay her an additional £3 to cover this cost if she agrees to come.

After the daughter has sat the exam Roisin asks for the money.  She is given £200 only and told that she wasn’t a very good teacher and should be glad she is being paid at all.
Advise Roisin.

3.     Louisa has received a judgment against her estranged ex-husband Dan. He is to pay her £50,000 to cover costs from their marriage.
Dan is not wealthy and asks Louisa if he gives her £30,000 and he can pay the rest in a year’s time. She agrees.
In a year’s time Dan can only give her £15,000 and she accepts that saying that she will not request any more money off him.
Following that a dispute arose over who would receive the family dog and Louisa has now sued him for the £5,000 plus interest.
Advise Dan.

  1. Rob, Tony and Richard who are students at Lincoln University decide to set up a syndicate for the National Lottery.  They take it in turns to pay, but do the same numbers every week.  Richard has a computer so sets up an on-line account in his name.  After six months, the syndicate has a win of £3,000 but Richard refuses to pay Rob and Tony. Advise Rob and Tony.
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