Tony, who owns a hair salon asked his son, Guy, a trained hair stylist, to work in the salon three days a week. When Guy asked Tony to pay him, Tony refused. Tony agreed with his daughter, Meghan, that he would pay her accommodation expenses whilst she studied at university. After Meghan had completed two years of her three-year course, Tony stopped making the payments. In June, Tony entered into a contract with Stephen to decorate the premises of a second hair salon he intended to open. The contract provided for the work to be completed by 31st August. In July, Stephen told Tony that he would not be able to complete the work until the end of September. As Tony had planned a grand opening of the new salon for 01 September, he agreed to pay Stephen an extra £2,000 to finish the decorating by the end of August. Stephen finished the work on time, but Tony has refused to pay him the extra money. Having regard to the rules on formation of contracts relating to intention to create legal relations and consideration, consider the legal position regarding Tony’s dealings with Guy, Meghan and Stephen. Illustrate your answer by reference to relevant cases
Tony, who owns a hair salon asked his son, Guy, a trained hair stylist, to work in the salon three days a week. When Guy asked Tony to pay him, Tony refused. Tony agreed with his daughter, Meghan, that he would pay her accommodation expenses whilst she studied at university. After Meghan had completed two years of her three-year course, Tony stopped making the payments. In June, Tony entered into a contract with Stephen to decorate the premises of a second hair salon he intended to open. The contract provided for the work to be completed by 31st August. In July, Stephen told Tony that he would not be able to complete the work until the end of September. As Tony had planned a grand opening of the new salon for 01 September, he agreed to pay Stephen an extra £2,000 to finish the decorating by the end of August. Stephen finished the work on time, but Tony has refused to pay him the extra money. Having regard to the rules on formation of contracts relating to intention to create legal relations and consideration, consider the legal position regarding Tony’s dealings with Guy, Meghan and Stephen. Illustrate your answer by reference to relevant cases
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Tony, who owns a hair salon asked his son, Guy, a trained hair stylist, to work in the salon three days a week. When Guy asked Tony to pay him, Tony refused. Tony agreed with his daughter, Meghan, that he would pay her accommodation expenses whilst she studied at university. After Meghan had completed two years of her three-year course, Tony stopped making the payments. In June, Tony entered into a contract with Stephen to decorate the premises of a second hair salon he intended to open. The contract provided for the work to be completed by 31st August. In July, Stephen told Tony that he would not be able to complete the work until the end of September. As Tony had planned a grand opening of the new salon for 01 September, he agreed to pay Stephen an extra £2,000 to finish the decorating by the end of August. Stephen finished the work on time, but Tony has refused to pay him the extra money.
Having regard to the rules on formation of contracts relating to intention to create legal relations and consideration, consider the legal position regarding Tony’s dealings with Guy, Meghan and Stephen. Illustrate your answer by reference to relevant cases
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