1. Case Problem

Two women went into a cafe where one ordered a bottle of ginger beer for her friend, Mrs. Donoghue. After consuming some of it, Mrs. Donoghue discovered part of a decomposed snail at the bottom of her bottle. She became ill as a result of drinking the contaminated beverage. She is contemplating of three legal actions.

1.1 Mrs. Donoghue carefully pondered of suing the owner of the cafe for breach of contract? Does there really a contract between them? If yes, please state your reasons.

1.2 She also carefully pondered of suing the owner of the cafe for negligence. If yes, please state your reason.

1.3 Furthermore, she is considering of suing the manufacturer of the ginger beer negligence. If yes, please state your reasons.

2. Case Problem

Mr. A wrote and mailed to Mr. B offering to sell his truck worth $10,500.00. In response, Mr. B replied by mail with a counteroffer of $8,000.00. Days later, Mr. B wrote again to Mr. A and said that he accepted the offer of $10,500.00 and the letter reached to Mr. A. Though there was an acceptance to the offer, but Mr. A decided to sell his truck to other interested party.

2.1 Does there a contract between Mr. A & Mr. B? If yes, please state your reasons.

3. Case Problem

Mr. A has bought a new 90-hp out-board motor. He told his friend, Mr. B that he will give him his old 35-hp motor as soon as the new one arrives. Mr. B has a small boat but his small boat cannot accommodate the old engine. Mr. B needs to modify his small boat, but he will have to sepnt expensive modification. with Mr. A's suggestion, he bought a new boat. When the new 90-hp motor arrived, Mr. A changed his mind and decided to sell the old to other party.

3.1 Does there a contract between Mr. A & Mr. B? Please state your reasons.