Formation of a contract and CRA 2015 Suggested Answer
Elena wanted to help her brother, Ferris, to establish his new cleaning business. She told
Gil that she would pay him £150 for his spare set of ladders if he would deliver them to
Ferris. Gil agreed to sell the ladders for £150 but said that Elena would have to collect
them. Gil heard nothing further from Elena for two days. He then decided not to sell the
ladders after all. The next day, Elena called round to Gil’s house with £150 to pay for the
ladders and to collect them. Elena was furious when Gil said, “I am not selling the
ladders.”
Elena had three dogs. She bought a vacuum cleaner from Hana Trading for £500. The
vacuum cleaner was generally considered the best on the market for collecting pet hairs.
After using it for three months, she found that it now performed poorly in collecting dust
and dirt and that it barely removed the pet hairs. Hana Trading rejected Elena’s
complaints about the vacuum cleaner. Hana Trading reminded Elena that she had signed
an invoice in which she agreed that any complaints must be reported within six weeks of
purchase.
Consider the possible rights and remedies of Ferris against Gil in connection with Elena’s
attempts to buy the ladders for Ferris.
Consider Elena’s rights and remedies against Hana Trading in connection with her
purchase of the vacuum cleaner. [30 marks]
Ferris v Gil
Ferris may have a possible right under the Contracts (Rights of Third Parties) Act 1999
against Gil
Offer and acceptance are key elements of a contract. An offer is a clear and definite promise
to be bound, and acceptance must match the terms (Hyde v Wrench). Elena made an offer
to buy the ladders for £150 including delivery. Gil made a counter offer by changing the
delivery term (Ramsgate Victoria Hotel v Montefiore). This ended the original offer.
Elena then visited Gil two days later with the money, which may indicate acceptance of the
counteroffer. However, Gil could argue that his offer had lapsed due to time or was
withdrawn, meaning no contract was formed.
If there was a valid contract between Elena and Gil, Ferris may be able to claim under the s.1
Contracts (Rights of Third Parties) Act 1999, which allows a third party to enforce a term if
the contract was intended to benefit them and they are expressly identified (e.g. by name
or description). Ferris was named and clearly the intended recipient of the ladders, so he
could potentially enforce the contract.
Elena wanted to help her brother, Ferris, to establish his new cleaning business. She told
Gil that she would pay him £150 for his spare set of ladders if he would deliver them to
Ferris. Gil agreed to sell the ladders for £150 but said that Elena would have to collect
them. Gil heard nothing further from Elena for two days. He then decided not to sell the
ladders after all. The next day, Elena called round to Gil’s house with £150 to pay for the
ladders and to collect them. Elena was furious when Gil said, “I am not selling the
ladders.”
Elena had three dogs. She bought a vacuum cleaner from Hana Trading for £500. The
vacuum cleaner was generally considered the best on the market for collecting pet hairs.
After using it for three months, she found that it now performed poorly in collecting dust
and dirt and that it barely removed the pet hairs. Hana Trading rejected Elena’s
complaints about the vacuum cleaner. Hana Trading reminded Elena that she had signed
an invoice in which she agreed that any complaints must be reported within six weeks of
purchase.
Consider the possible rights and remedies of Ferris against Gil in connection with Elena’s
attempts to buy the ladders for Ferris.
Consider Elena’s rights and remedies against Hana Trading in connection with her
purchase of the vacuum cleaner. [30 marks]
Ferris v Gil
Ferris may have a possible right under the Contracts (Rights of Third Parties) Act 1999
against Gil
Offer and acceptance are key elements of a contract. An offer is a clear and definite promise
to be bound, and acceptance must match the terms (Hyde v Wrench). Elena made an offer
to buy the ladders for £150 including delivery. Gil made a counter offer by changing the
delivery term (Ramsgate Victoria Hotel v Montefiore). This ended the original offer.
Elena then visited Gil two days later with the money, which may indicate acceptance of the
counteroffer. However, Gil could argue that his offer had lapsed due to time or was
withdrawn, meaning no contract was formed.
If there was a valid contract between Elena and Gil, Ferris may be able to claim under the s.1
Contracts (Rights of Third Parties) Act 1999, which allows a third party to enforce a term if
the contract was intended to benefit them and they are expressly identified (e.g. by name
or description). Ferris was named and clearly the intended recipient of the ladders, so he
could potentially enforce the contract.
