1. ‘It is indisputable that unless all the material terms of the contract are agreed there is no binding contract. An agreement to agree in the future is not a contract; nor is there a contract if a material term is neither settled nor implied by law and the document contains no machinery for ascertaining it' (Maughan LJ, Foley v Classique Coaches Ltd (1934)). Explain this statement.

2. Tony, the owner of a London-based manufacturing company, has to attend an important business meet- ing in Edinburgh on Monday. He is virtually certain to be awarded a lucrative contract for his company if he keeps the appointment. He books a flight on-line with PlanesRus. The booking conditions include the following statement: ‘the company gives no guarantee that a seat will be available on a particular flight and reserves the right to transfer customers to later or earlier flights and will not in such circumstances be liable to pay compensation.' Tony books a taxi to take him to the airport in London and overnight accom- modation in Edinburgh for the Monday night. On arrival at the airport for his flight, he is informed that the morning flight to Edinburgh is full but he is allocated a seat on the Tuesday morning flight. He fails to keep his appointment and as a result loses the contract for his company.

Advise Tony who wishes to claim damages for the lost business deal, the cost of his taxi fare and the hotel booking.