Q1) Robbie runs a fairground, Toppers, and hires a big dipper from Fred for £3,000 per annum. Times are tough, however, and the bad weather has affected business at the fairground. Robbie asks Fred whether he can have a reduction in rent until he gets on his feet again. He intends to use the money, thereby saved to advertise the fairground more widely. Fred agrees to reduce Robbie’s rent by £1,000 per annum until business improves. Delighted, Robbie immediately spends £1,000 on advertising, in the hope that it will attract more visitors to the fairground. However, Fred now regrets his promise and demands Robbie pay him the full amount of the rent immediately.
Spooks operates the ghost train at the fairground and receives a 50% of the ticket sales. He wishes to buy his wife a new car and needs some extra cash. He telephones Robbie and asks him to increase his share of the ticket sales to 75% for a twelve-month period. Ghost train operators are specialists and extremely hard to find. Robbie does not want to lose Spooks and although he will find it a financial strain to fund the higher commission, Robbie asks Spooks if he cn think about this request for a few days. Spooks agrees. The next day, however, Spooks gets an offer from another fairground, offering a 75% share of the ticket sakes to runt their ghost train. He goes to Robbie’s home and threatens to quit his job unless Robbie agrees to give him the 75% share of the ticket sales immediately. Robbie agrees. Three months later Robbie tells Spooks that from next month Spooks will receive only the 50% share of the ticket sales.
Advise both Robbie and Spooks.
Stone, The Modern Law of Contract, (10th Edition), (2013), Chapter 3, Routledge
Stone, Cases and Materials on Contract Law, (3rd Edition), (2014), Chapter 3
Treital, Contract Law, (13th Edition), 2011, Chapter 3.
Pinnel’s Case (1602) 5 Co Rep 117a
Q2 This is critical as it is based on exam assignment, it must be drafted with own words.
“…[T]he clear difficulty with identifying terms as innominate is that it can leave the contractual relationship in a state of uncertainty. Nobody can be really sure what the outcome of a particular situation will be until the term has been breached and the judge in the case has construed the term and declared what remedy is appropriate.”
Chris Turner, Unlocking Contract Law, (2004), at page 155.
TIPS: You should ensure that you closely read the case of Hong Kong Fir Shipping Co. Ltd v Kawasaki Kisen Kaisha Ltd  2 QB 26, CA when drafting your answer to the essay.
The essay requires to think about the importance of terms being certain versus the flexibility, which can be a product of something being termed as Innominate.
Q3) Need help based on exam style of answering (the basic format that needs to be addressed for instance the definition followed by the application)
Ace Manufacturing leased a computerised drilling machine from Finco for three years at a monthly rental of £250. One of the terms of the contract stated: The oil in the bearings on the top of the drilling machine must be changed weekly. Failure to do this may result in serious damage to the drill. The contract provided that Finco’s engineers are to take monthly inspection, and servicing, visits.
On one visit Finco's engineer discovered that the oil on the top bearing had not been changed since her last visit. She reported this to Finco, who instructed her to remove a vital part of the drill so that it could not be used. Finco have now sent a letter to Ace demanding the return of the drill. Finco states that this is because the oil has not been changed and also because Ace has three times been late in paying the rental - indeed, this month's rental is now 15 days overdue. Ace blames this on a cash flow problem. Not being able to use the drill has disrupted their production schedules, though at present their factory is not working at full capacity.
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.Question 1
The dictum in the case of Pinnel’s case on consideration was that the payment of the debt does not amount to full payment and that it is not a good consideration to forgo the contractual payment.
Robbie makes a contract with Spooks that he will be paid 50% of the tickets sales. However, Spook's needs a pay rise of the same work that he contracted originally at a percentage of 75 and threatens to quit the job on the grounds of scarcity of operators in the ghost train business. He is offered a job by another fairground on a pay of 75% of the tickets sales and uses this excuse to wanting pay rise from Robbie. There is no consideration of any nature on his part for the pay rise, and thus he is not entitled to the 75% pay rise.
Robbie can use the case of Stilk v Myrick in defense of existing duty and thus a consideration arising from existing duty does not form a new consideration. The two-crew members deserted the ship sailing from London to Baltic and back to London. The crew consisting of 11 people had made a contract with the owners of the ship that they will be paid 5 pounds monthly for the job. After the desertion, the remaining crew demanded a pay rise and threatened not work until the captain agreed...