Higher National Certificate
Business & Finance
Module: Business & Company Law
C O N T E N T S
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Gary had been Imelda's gardener for many years. Imelda buys a new car, and tells Gary that because he did such a good job in her garden last summer, that he could have her old car. Gary is delighted, and advertises his rusty old Ford for sale in the window of the local post office. Archie buys the car after being told by Gary that it had never been involved in an accident. A day later, a friend of Archie's who is a mechanic discovers that the car had in fact been involved in an accident. Although the damage is not serious, it meant the car was worth ÃÂ£300 instead of the ÃÂ£550 Archie paid for it.
Two days later, Imelda changes her mind and refuses to give Gary her old car.
Discuss the contractual claims which may arise, and the legal issues upon which their outcome may depend.
The four essential elements of a contract: offer, acceptance, consideration and the intention to create legal relations must be present before it can be said that a valid, legally binding contract exists.
It needs to be established whether or not a contract exists between the parties in question and if so the contractual claims which may arise.
First we will examine the connection and contractual claims between Gary and Imelda. As Gary is Imelda's gardener we shall assume that they have a business relationship i.e. employer and employee and therefore have the intention to create legal relations as opposed to a domestic or social agreement where they wouldn't intend to be legally bound, it...