1

Aaron carries on a personal frozen meat business. He imports frozen meat from New Zealand as well as Europe and sells it to local retail buyers in Hong Kong with direct door-to-door delivery. The business has grown fast, especially during the Covid-19 pandemic. Seeing promising prospects, Aaron plans to expand the business. One of his moves is to ensure reliable sources and a steady supply of frozen meat. He has spotted a New Zealand farm ('the Farm') which breeds high-quality lamb and beef. Aaron started negotiations with the Farm with a view to securing a long-term supply contract of meat with it. He knew that he has a lot of competitors and wanted to make a deal with the Farm as quickly as possible. Finally, on 1 September, Aaron sent a concrete proposal by post to the Farm with terms as below:

I offer to buy from your farm the following per annum:

1,200 kilograms (kg) of grass-fed lamb (rack or leg) at the rate of HK$250.00 per kg divided into 12 equal consignments (that is, 100 kg per month) to be delivered to my storehouse in Hong Kong on the 1st of each month starting January 2021.

1,200 kilograms (kg) of grain-fed beef (rib-eye or sirloin) at the rate of HK$200.00 per kg divided into 12 equal consignments (that is, 100 kg per month) to be delivered to my storehouse in Hong Kong on the 1st of each month starting January 2021.

Payment for each consignment shall be made in Hong Kong or New Zealand currencies at the option of the seller by bank transfer within 10 days after delivery.

While waiting for a reply from the Farm, Aaron discovered another farm in Hungary which also supplies very good quality lamb and beef but at much cheaper prices. He wanted to buy from the Hungarian farm instead. So on 5 September, Aaron wrote another letter to the Farm stating that he would withdraw his offer dated 1 September.

On 6 September, the Farm posted a letter to Aaron stating 'We will sell to you 1,200 kg of grass-fed lamb and 1,200 grain-fed beef complying with all the terms of your offer.' The letter from Aaron withdrawing the offer only reached the Farm on 8 September. The Farm was very upset by this letter and argued with Aaron that a contract has already been formed between them for the selling of the lamb and beef.

Required:

The Farm wanted to take legal action in the courts of Hong Kong for breach of contract by Aaron. Advise the Farm whether there is a contract between it and Aaron. In your answer, give full analysis with support of legal cases on the legal principles regarding offer, acceptance and revocation of offer

2

'Duress' is one of the vitiating factors that will invalidate a contract. Give a brief introduction to the legal principles of 'physical duress' and demonstrate how these principles function to vitiate a contract with the support of relevant legal cases.