Contract Law; Offers And Promissory Estoppel

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CONTRACT ASSIGNEMENT Tajwar T. Chaudhry LLB diploma year 1 Beatrice made an offer to Leonato, her uncle, to move in with him and take care of him since his wife had died. In exchange, Leonato promised her that if she and her husband Charles paid the remaining mortgage payments, they would own his house when he dies. However, after being warned by Pedro, Leonato’s financial advisor, he tells Beatrice and Charles to leave the house and also they will not receive a penny from his money. In family cases the presumption is that the parties to a domestic agreement do not intend to create to a legally binding contract. Though, we can see that intention to uphold the promise was present. In the case of WARD v BYHAM, a father was supposed to make payments to the mother of his illegitimate child provided she took good care of the child. When the father failed to pay, Lord Denning stated in the court that by performing the duty of taking care of her child is providing good enough consideration. Beatrice before agreeing to move in tells Leonato that if they move in, it will be hard for them to buy a house in the rising property market when Leonato reassures them that it won’t be necessary. Hence, Leonato will lose his house either way because Beatrice and Charles have provided sufficient consideration by leaving their house to move in with Leonato and also by paying the mortgage payments for his house. Leonato has made a unilateral offer and it was ruled in the case of ERRINGTON v ERRINGTON that the offeror cannot prevent performance once the offeree has started performing. Leonato should also consider that by moving in with him and agreeing to pay his mortgage payments, the couple has provided him with a practical monetary benefit by saving him from the hassle of paying high mortgage payments. It was ruled in WILLIAMS v ROFFEY BROS. that the sub-contractor saved the main

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