2020 Contract Law Question 1 — LawShortcut Independent Model Answer
A classic car, a sign reading “first to offer €20,000 buys this car”, a written contract that arrives at the wrong price and says it binds no one until signed, and €4,000 already paid over. A compulsory 50-mark formation question that turns on offer and acceptance, “subject to contract”, and whether that €4,000 is a penalty, a deposit, or recoverable.
Scenario summary
Maddie saw a classic car offered for sale outside Acme Motors, which was closed at the time. A sign on the vehicle read: “First to offer €20,000 buys this car.” She noted the contact details and left.
On the Monday she telephoned the owner, Thomas, and told him she would pay €20,000. She was leaving on a two-week holiday and asked him to hold the car until she came back. Thomas agreed, but on terms: Maddie was to pay €4,000 in agreed damages if she did not go through with the purchase “for whatever reason.” She accepted. Thomas said he would post out the written contract, and that she should bring the signed contract and the balance to complete.
The document that arrived stated that there was no binding contract until it was signed by both parties, and gave the price as €30,000. Maddie rang Thomas. He could not recall what price had been agreed, said he would check his records and that he “would stand over what they agreed” — and mentioned that another buyer had shown interest. Maddie said that, on the footing that the price was €20,000, she would send the €4,000 so that he would not sell to anyone else before she returned. Thomas agreed.
Maddie posted a cheque with a note attached: “Hold the car for me and we will complete this sale when I return.”
When Maddie returned from her holiday she was notified that she was being made redundant. She told Thomas she could not proceed. Thomas said he would keep the €4,000 as damages for her breach. Maddie replied that she had never signed anything and asked for her money back.
Candidates are asked to advise Maddie as to her legal position under the law of contract.
This is a LawShortcut scenario summary written in our own words. For the exact examined wording, use the official King’s Inns paper linked above.
What this model answer covers
Issues and structure addressed in the full LawShortcut model answer:
- Reading the question — separating the four contractual moments before writing a word
- Issue 1 — The sign on the car: offer or invitation to treat?
- Issue 2 — Was there a binding contract of sale? “Subject to contract” and the absence of consensus ad idem on price
- Issue 3 — The arrangement to hold the car: a separate collateral contract, and what Maddie gave for it
- Issue 4 — The €4,000: penalty or liquidated damages; deposit or part payment; total failure of consideration
- Overall advice to Maddie — the recovery argument put in order of strength
- Where the 50 marks live — how the examiner’s marks are likely distributed across the four issues
- Common ways to lose marks on this question
- Authorities relied on, with the point each one is cited for
- The reusable answer structure for any formation-plus-remedy problem
Read the complete LawShortcut model answer to this question — reading the question, issue spotting, the applicable law, application to the facts and conclusions — inside the King’s Inns Contract Law Model Answer Vault.
Part of the King’s Inns Contract Law Model Answer Vault — 30 independently authored model answers, 2020—2025.
All 2020 Contract Law answersContract Law Model Answer VaultStudy Contract law