Contract Law

To solve the following problem question essay:
The Word Limit The word limit is 1,250 words. The word limit does not include footnotes or the bibliography and there is a 10% margin either way
Simone is an entrepreneur who runs several fitness centres in London. She is opening a new gym in Hendon. To encourage people to come to the new gym she puts an advert in the Hendon Gazette, which states “New gym opening in Belle Parade, Hendon! To celebrate this opening a year’s free membership will be offered to the first 20 people who come to our gym on Saturday”. Unfortunately, only 20 people came to the gym on Saturday and Simone therefore does not want to have to give them all free membership as she will be making a big loss.
Simone was quite upset that the opening had not gone well and so her friend Nina tidied up the gym to cheer her up. Simone was so pleased when she saw what Nina had done that she said she would pay Nina £75, however Simone now regrets saying this and does not want to pay Nina the money.
Simone needs a new treadmill for her Holborn gym. She contacts Johnsons Limited, a supplier of gym equipment. Simone has a conversation with David, a salesman for Johnsons, and tells him that she wants to buy a Runner 2,000 treadmill for the Holborn gym but that it must be suitable for heavy usage. David confirms that the Runner 2,000 treadmill is suitable for heavy usage, so Simone buys it. A week after the Runner 2000 is installed in the Holborn gym, it breaks.
Simone is planning to open a new gym in Camden. She has obtained a suitable building and has entered into a contract with Peter, a builder, to do the necessary work to create the gym for her. Under the contract with Peter, Simone agreed to pay Peter £55,000, provided that the work is completed by 1 January 2021. At the end of November 2020, it becomes apparent that Peter is running late and will not be able to get the work done by the agreed date. This is a serious problem for Simone as 65% of her members join in January and she has already recruited 2 highly experienced staff to run the gym who are due to start work on 1 January 2021; she has also already launched an introductory offer for January 2021 and a number of potential clients have signed up to this offer. Simone therefore tells Peter that she will pay him an extra £5,000 to finish the gym on time.
Advise Simone:
(1)whether she is legally required to supply the gym memberships for the Hendon gym;
(2)whether she is legally bound to pay Nina £75;
(3)whether there has been breach of any term(s) regarding the Runner 2000; and
(4)if she is required to pay Peter the additional £5,000.
Note : In your answer to Part B, you are only required to deal with the 4 issues specified above.
Style and Format You should type your coursework as a Microsoft Word document. You should type in a 12 point font that is easy to read (eg Arial) and 1.5 line spacing (so the marker has room to make comments on your work). Your coursework must be fully referenced using OSCOLA. You should set out a bibliography at the end of your coursework giving details of the sources that you used in your coursework. You should set out a word count at the end
Assessment Criteria The pass mark is 40%. You will be assessed against the following criteria:
• Comprehension of the instructions and the task to be undertaken. (LO1)
• Identification and understanding of the practical issues and problems and how the law may impact on them. (LO2 and LO3)
• The ability to apply knowledge to situations and provide arguable legal and non-legal solutions for hypothetical problems (LO4 and LO5)
• Ability to identify and select information and construct a valid argument with supporting evidence (LO1 and LO6)
• Effective communication of outcomes in an appropriate format and in time constrained conditions (LO4 and LO7)
C Elliott and F Quinn, Contract Law (12th edition, Pearson 2019) for all sources

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