Reference no: EM132179584

Subject: Aspect of Contract

What is the legal obligation (if any) in the following situations? Give reasons for your answers.

1. Each month, Henry, Kate and their grandson, Sam, enter a general knowledge competition, each paying AED10 towards the entry fee. Sam always emails the entry form, pays the entry fee and receives the confirmation of entry. Last month, they won the competition and the prize was AED 6000. Sam refuses to share the AED 6000. Advise Henry and Kate. All family members – please apply rule about family agreements with respect to an intention to create legal relation.

2. Mike called the police when he discovered a thief had stolen his car. When they arrived, he told Reem, the officer in charge, that he would give each of the 3 police officers AED600 if they returned the car to him by 9am the next day when he was due to go on a driving holiday. The police officers recovered the car and returned it to Mike by 8am the next day. Mike has refused to make the payment to the police officers. Advise the police. Existing obligation is not good consideration for a new promise-apply here

3. Maitha buys a washing machine as a gift for her mother from Home Supplies Ltd. The washing machine stops working ten days later. Who can sue Home Supplies ltd for breach of contract and why? What has been the impact of the Contracts (Rights of Third Parties) Act 1999 in situations like this and why? How would the Act change the position of the mother?

4. Bob borrows money from Fair Bank to set up his own small business, selling fitness books and equipment which pays for his own lessons to become a fitness trainer.After a few months Bob’s main supplier finds out he is only 17 and refuses to trade further with him. This means Bob doesn’t have enough business to pay for his lessons to become a trainer. He is also behind with payment of his mobile telephone account.

Advise Bob about the enforceability of each of the four contracts he has entered into:

i. For the bank loan (On-going obligation –unenforceable)

ii. With the supplier of the fitness books and equipment

iii. For his lessons to become a fitness trainer (Training contracts are enforceable for a mother)

iv. For his mobile phone. (Is mobile phone a necessary)?

Note: in the above question the bold requirements are important to do