Last year Carol decided to open a gallery selling her artwork. She approached her sister Gemma and her friend Molly, as she knew that they were both interested in purchasing paintings for their business premises. Gemma ordered 2 paintings for her café at a total cost of £800. Molly ordered 5 paintings for her new office, which she wanted to look impressive when welcoming new clients, at a total cost of £1,000. Several months passed while Carol worked on the paintings. The final painting for Molly took slightly longer than expected, it was eventually delivered one month later than the initial date agreed. This was partly due to Carol being busier than expected, as Carol’s gallery became well-known and financially successful very quickly. Molly and Gemma, although delighted with their paintings, feel Carol ‘doesn’t really need the money’ and are now reluctant to pay for the paintings. Question Which of the following statements regarding the agreement between Carol and Gemma is correct? A This is a family agreement and therefore outside the scope of the legal system B Gemma can avoid the contract on the grounds that Carol took advantage of their family relationship and charged excessive consideration C This is a business agreement and therefore the presumption is there is an intention to create legal relations D If Gemma returns the paintings she will be under no obligation to pay for them Question Which of the following statements regarding the agreement between Carol and Molly is correct? A This is a social agreement and therefore outside the scope of the legal system B Molly can avoid the contract based on the late delivery of the final painting C This is a business agreement and therefore the presumption is there is an intention to create legal relations D If Molly returns the paintings she will be under no obligation to pay for them Question If Carol’s agreement with Gemma included a term stating there was no intention to create legal relations and the agreement was ‘binding in honour only’ would Carol be able to enforce the agreement with Gemma through the courts? A No, because even without the term this is a family agreement and therefore outside the scope of the legal system B Yes, because the agreement is a business agreement and the presumption to create legal relations cannot be rebutted C Yes, because a valid contract exists following offer and acceptance, and consideration D No, because the term would rebut the presumption of the intention to be legally bound
Last year Carol decided to open a gallery selling her artwork. She approached her sister Gemma and her friend Molly, as she knew that they were both interested in purchasing paintings for their business premises. Gemma ordered 2 paintings for her café at a total cost of £800. Molly ordered 5 paintings for her new office, which she wanted to look impressive when welcoming new clients, at a total cost of £1,000. Several months passed while Carol worked on the paintings. The final painting for Molly took slightly longer than expected, it was eventually delivered one month later than the initial date agreed. This was partly due to Carol being busier than expected, as Carol’s gallery became well-known and financially successful very quickly. Molly and Gemma, although delighted with their paintings, feel Carol ‘doesn’t really need the money’ and are now reluctant to pay for the paintings.
Question
Which of the following statements regarding the agreement between Carol and Gemma is correct?
A This is a family agreement and therefore outside the scope of the legal system
B Gemma can avoid the contract on the grounds that Carol took advantage of their family relationship and charged excessive consideration
C This is a business agreement and therefore the presumption is there is an intention to create legal relations
D If Gemma returns the paintings she will be under no obligation to pay for them
Question
Which of the following statements regarding the agreement between Carol and Molly is correct?
A This is a social agreement and therefore outside the scope of the legal system
B Molly can avoid the contract based on the late delivery of the final painting
C This is a business agreement and therefore the presumption is there is an intention to create legal relations
D If Molly returns the paintings she will be under no obligation to pay for them
Question
If Carol’s agreement with Gemma included a term stating there was no intention to create legal relations and the agreement was ‘binding in honour only’ would Carol be able to enforce the agreement with Gemma through the courts?
A No, because even without the term this is a family agreement and therefore outside the scope of the legal system
B Yes, because the agreement is a business agreement and the presumption to create legal relations cannot be rebutted
C Yes, because a valid contract exists following offer and acceptance, and consideration
D No, because the term would rebut the presumption of the intention to be legally bound
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