University : University of Portsmouth UniLearnO is not sponsored or endorsed by this college or university.
Subject Code : LAW102
Assignment Task

 

This assignment requires you to explain the legal position of the hotel in Contract law, in the given scenario.
Your answer should, taken as a whole:
- state legal principles relevant to the law of Contract, and apply these to the facts;
- cite relevant case and statute law;
- indicate matters of fact that may support the case of either party, and
- outline the legal remedies available.

Working with other students is permissible in your investigation and research, but the work you submit MUST be prepared by you alone.

 

SCENARIO
The hotel wanted to install a walk-in freezer room and contacted Imberseal Ltd, who supply and install refrigeration units. On January 5 th Imberseal sent a written price quotation for a unit, of £6000 fully fitted.
The reverse side of the quotation showed Imberseal’s terms and conditions. These included:
1. These terms and conditions shall govern the agreement made between us and the customer, and shall prevail over any terms suggested by the customer.
2. We reserve the right to alter the quoted price to reflect increases in the cost to us of components.
3. Our total liability to the customer under this contract shall not exceed the value of the goods as invoiced, and shall not extend to losses that are consequential to any defect or malfunction of the equipment or its components.
On January 9 th Constance, the hotel manager, replied to the quotation on the hotel’s standard order form; this shows terms including one that states, “invoice prices of goods ordered are to be as at date of order”. On January 11 th Imberseal acknowledged the hotel’s order by email. Refurbishment work at the hotel delayed the installation until early March. Imberseal then invoiced the hotel for £6500, explaining that increased costs had caused the increase. (Imberseal’s terms and conditions are on the back of the invoice.) Constance refuses to pay any money in respect of the price increase. A more serious problem arose in May, when the unit broke down and could not be repaired for ten days. Inspection by an independent engineer has revealed that the breakdown was due to incompetent installation work.

The freezer had thawed out, and Constance ordered its contents (to the value of £1000) to be destroyed as a safety measure. She ordered replacement food to be bought at the local market (at retail prices, a further £2000); and she had to reimburse various guests £500 in respect of their disappointment (the hotel’s restaurant is famous and highly rated).

Constance also holds Imberseal responsible for these losses.

Explain the hotel’s legal position in Contract.

 

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  • Uploaded By : Brett
  • Posted on : April 17th, 2019

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