Business and company law

SECTION ONE
Answer ALL questions in this section. (35% of the total marks of this coursework
component available)
1. In relation to English legal system,
Required
a. Explain the sources of law in England and Wales? (10 marks)
b. Explain and discuss the differences between private law and public
law including the areas of law that they cover. (10%)
2. In relation to the laws of tort, explain the case and legal principles
established in Donoghue v Stevenson 1932, Hedley Bryne v Heller 1964,
Caparo v Dickman 1990. (15%)
(Total: 35 marks)
SECTION TWO
Answer ALL questions in this section. (55% of the total marks of this coursework
component available)
You are a practising lawyer with a wide variety of clients. One of your clients John Wright
runs a business selling paintings by famous artists. John owns an Art Gallery in London
from where he has to travel extensively to meet customers and artists.
He has contacted you to seek advice on his legal position in the following situation.
On 11th November a Friday at 9.00am he put an advertisement in the window of his Art
Gallery which reads:
“This unique Matisse Painting “Cornfields” to purchase for £5000 cash. This is a serious
offer- the painting will be sold to the first person who accepts it tomorrow Saturday 12thvalid for one day only!”
When Mick saw the notice he immediately posted a letter of acceptance of John’s offer
but stated he would only be prepared to pay £4,800. The letter arrived first thing on
Saturday morning. John read it before opening his shop for business, but decided that he
was not interested in dealing with Mick.
Ronnie was the first person to arrive at John’s premises on Saturday morning. He offered
John a cheque for £5,000, but John refused to accept the cheque and told Ronnie he
could not have the painting.

Later in the day Charlie asked John if he would keep the offer open until Monday so he
could get to his bank to get the £5,000 in cash and John agreed. However, later that day
(Saturday) Marianne offered him £6,000 in cash for the painting and John agreed to sell
it to her. Marianne paid him the cash and said her chauffeur would pick up the painting
on Monday afternoon.
On Monday morning Charlie returned to complete the purchase of the painting but John
explained he had sold it to Marianne. Charlie subsequently went to another art dealer but
had to pay £8,000 for another painting by Matisse. On Monday afternoon Marianne
phoned John to say she no longer wished to buy the painting and wanted her money
back.
Required:
Analyse the above situation with respect to the rules governing the formation of a
contract. In particular consider and explain the following,
(a) The precise nature of John’s advertisement. (10 marks)
(b) Whether Mick has entered into a binding contract with John. (15 marks)
(c) Whether Ronnie has any right of action against John. If so, which right(s) of
action. (10 marks)
(d) Whether Charlie has any right of action against John. If so, which right(s) of
action. (10 marks)
(e) Whether John has any right of action against Marianne. If so, which right(s)
of action. (10 marks)
(Total: 55 marks)

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