Order Description
Can you please read and follow the questions and answer accordingly. Thanks.

Learning outcomes

LO1 describe and discuss the role of law, its sources (common law, equity, statute and
European law) and the workings of the court system

LO2 describe and evaluate methods of alternative dispute resolution

LO3 evaluate the impact and effects of European law, both EU law and human rights law

LO4 describe the elements of contract and tort law, the ambit of contract and tortious
liability, and the rights and duties of persons relating to contract and tort

LO5 prepare reasoned advice on a range of straightforward legal problems

Case study
You have been successfully working for several months in your new position as Contracts
Negotiator for your employer Montague Builders Ltd, a small building contractor. You have been asked by the Managing Director to provide legal advice on a number of issues which have arisen out of
a particular contract that you negotiated. The issues raised require you to consider, in particular, the law of contract and tort.
In concluding your advice, you should also identify which court, in the event of litigation, is most likely to hear all of these issues and whether the court would encourage Alternative Dispute
Resolution (ADR).

Note: Give legal advice, in essay format, on the following matters, giving equal weight to answering each task, demonstrating that you recognise the importance of case law and statute law.

Task 1
You have drawn up a standard form of building contract which your employer now uses when
contracting with clients, and all that is needed is to fill in the appropriate details for each job.The
standard forms contains the following provision:
‘Price variation clause: This clause sets out that Montague Builders Ltd can increase the contract price to take into account any increase in the cost of materials required to be purchased to
complete the work.’
You entered into discussions with James on behalf of Montague Builders Ltd to carry out the renovation and conversion of a large house into four flats. You discuss with James the plans drawn up by
a firm of architects and the programme of works, including start and completion dates. You quote a fixed price of £100,000 and you state that the price is payable in five equal staged payments of
£20,000 each, as the work progresses. You then shake hands with James.
As you leave the meeting you say: ‘I will send you the written contract for signing by email when I return to the office.’
Two weeks later, the work commences on time, although James has not signed the written contract.

Four weeks later, when you order roof trusses for the property, your supplier informs you that the cost has trebled. You immediately tell James that, in accordance with the price variation clause,
the contract price will increase accordingly. James refuses to pay the extra.
Demonstrate your understanding of the formation of a valid contract by outlining its essential elements and discuss whether James has a valid oral contract with Montague Builders Ltd, and explain
whether the price variation clause in the ‘written contract’ is binding on James.

Task 2
Albert is a plumbing subcontractor who has been engaged to complete the plumbing works in the property. The subcontract specifies that all persons must wear a hard hat when on-site, which will be
provided by Montague Builders Ltd. Albert ignores the instruction and he is injured by a roof tile which is negligently dropped by one of Montague Builders Ltd’s employees.
Advise Montague Builders Ltd of its liability, if any, under the Occupiers’ Liability Act 1957 to Albert and any defence it may have.