Because of Covid-19, Huan (who is a critical worker) has been working from her home. Because Huan does not have any spare rooms in her small house, she was initially using her dining room table as her desk. In May 2020, Huan decided to ask John for a quote to build a ‘garden office’ in her garden which could be used as an office.
John knew that his garden offices were not suitable for UK winters. However, when John visited Huan, John said: ‘I sell the UK’s best garden offices and working inside one of my garden offices is just as comfortable as working inside a palace.’ John also said: ‘I plan to give critical workers a 10% discount.’
Huan’s wife, Ayesha, cautioned Huan about buying the garden office – Ayesha thought that the garden office would be too cold in the winter. Huan decided to proceed anyway, as she was desperate for the additional space. After the garden office was built in June 2020, Huan was very pleased because she was initially able to work peacefully in it. In September 2020, however, when the weather became cold, Huan started complaining to Ayesha. In February 2021, the UK was hit by very cold weather, and Huan was no longer able to work in the garden office. Huan decided to contact John. At that point, Huan also realised that she was not given a 10% discount. John has ignored all of Huan’s calls and emails.
Advise Huan on any claims or remedies she may be entitled to for misrepresentation against John.
Liron is an intelligent 94-year old man. He moved to Clacton in January 2020 in order to be closer to his grandchildren whom he loves a lot.
After selling his old house, Liron sought the advice of his granddaughter, Edith. Liron habitually followed Edith’s advice as Edith is a qualified financial adviser and has always supported Liron after the death of Liron’s wife. Edith advised Liron to use the proceeds of the sale of the old house to invest in Edith’s new start-up business. Edith said that the new business would definitely be successful and that the investment would make Liron rich. Liron refused to do this because he is risk-averse and wanted to gift money to his many grandchildren.
Edith continued to pester Liron. Eventually, Liron agreed to guarantee a loan Edith was trying to get from Takeitall Bank. The Bank manager was very busy because his workload had increased as a result of Covid-19. Nevertheless, the Bank manager still explained the complicated mortgage agreement to Liron in a long meeting. Liron signed the mortgage agreement immediately after this meeting in May 2020. Edith’s business failed in February 2021. The Bank contacted Liron because the Bank wants to sell Liron’s new house to obtain funds to repay the loan. Liron felt guilty that the Bank might lose money, so he arranged to sell the house and repay the bank loan. As soon as Edith heard about Liron’s arrangement, Edith made an appointment for Liron to seek your advice on the validity of the mortgage.
Advise Liron on any claims, defences or remedies against Takeitall Bank for undue influence.
‘[If the terms are transparent] the consumer is to be assumed to be capable of reading the relevant terms and identifying whatever is objectively the price and remuneration under the contract into which he or she enters.’ Per Lord Mance in Office of Fair Trading v Abbey National Plc  UKSC 6.
Discuss this statement. What does ‘transparency’ mean? Do you agree with this statement about transparency enabling consumers to understand price and remuneration? Since the Abbey case, the law was reformed, it now being provided that such terms must also be ‘prominent’ – what does this mean? Answer with reference to the Consumer Rights Act 2015, case law and academic commentary.
‘Damages aim to compensate the innocent contractual party for the loss they sustained.’
Discuss to what extent this statement reflects the legal position, taking particular account of the approach to non-pecuniary loss. Answer with reference to relevant case law and academic commentary.