LLB Contract Assessment Module Name —– LAW OF OBLIGATIONS Title——————PROBLEM QUESTION 2 2500 words Axl, a businessman, collects rock ‘n’ roll memorabilia. One of his most prized possessions is a scarf, used by Elvis Presley, in the 1960’s, to wipe the sweat from his face. Axl has had the scarf DNA tested, and has a certificate verifying that the sweat is indeed that of Elvis. Unfortunately, Axl’s business concerns are not doing so well, and he is desperate to borrow money to keep the cash flowing. He goes to several banks, but they tell him that, in the current climate, it is impossible to lend his company the money he is requesting. Axl is close to despair, and considers that his business is about to collapse. He visits his old friend, Slash, to drown his sorrows over a bottle of Jack Daniels. Slash tells Axl that he has always envied the ‘Elvis scarf’, and asks Axl whether he would now be prepared to sell it. Axl is reluctant, telling Slash that he loves it more than anything else in the world, and can’t imagine life without this most treasured possession. Slash says that, if he will sell the scarf to him, he will lend Axl’s business the money it needs to keep trading. At this point, Axl flies into a rage, saying, ‘I thought you were my friend, but you are just trying to take advantage of me. You are a real low-life backstabber – I can’t believe you would try to con the scarf from me in this way!’ He leaves. Next morning, Axl has a change of heart. He would still rather not sell the scarf, but his business really needs the loan. He contacts Slash and agrees to let him have the scarf in return for Slash lending money to the business. After a few months the loan turned Axl’s business around. Now that he is out of danger, Axl regrets selling the scarf. He meets with Slash, telling him, “You should give me that scarf back – you know you cheated me out of it and that I didn’t want to sell. You took advantage of my financial desperation!” Slash replies that that is a load of rubbish, and that they had a solid contract of sale. However, as a gesture of good will, Slash tells Axl that he is prepared to reduce the monthly loan repayments, paid by Axl’s business, by 10% for the next two years. Referring to estoppel and duress in your answer where relevant: a) Advise Axl regarding the Elvis scarf contract (50%). b) Would Slash’s promise be binding? (50%).