1. Harry is the chief designer of an interior decorating company. He has entered into a contact to decorate Susan's apartment for HK$500,000. Four events are set out below.

(a)Harry sees a giant soft toy Bear Bear marked HK$1,000 in the window of Bear Bear Store. He thinks this Bear Bear is good match to Susan's new decorated apartment. He enters the shop and says to the sales assistant, 'I would like to buy the giant Bear Bear in the window marked HK$1,000, but can you give me a discount of 20% off?' The sales assistant says, 'let me ask my boss tomorrow'. On next day, Harry visits the Bear Bear Store again, the sales assistant shows, 'I am sorry, because it is a limited edition, so I am unable to sell you the Bear Bear for HK$1,000.' Analyse whether any contract has been made between the parties. Explain whether Harry has any legal rights.

(b)On one day a man who claimed to be Dr. Bun, of NoTrue WallPaper Ltd., the expert on wallpaper, persuaded Harry to buy the wallpaper for interior decoration. Harry bought 100 rolls wallpaper for HK$50,000 for Susan's apartment. He signed a written contract without bothering to read it. The contract said that NoTrue WallPaper Ltd. would have no liability for any defect in the wallpaper. When Harry used the wallpaper, they are wet and cannot put onto the wall. Harry goes back to NoTrue WallPaper Ltd., but it is already shut down. Harry immediately reported to the police and Consumer Council, but he was told that the man who had sold wallpaper to Harry was a rogue pretending to be Dr. Bun. Advice Harry of his legal position.

(c)Harry completes the first stage of the contracted design work. In reliance on the agreed design, Susan is planning to purchase a European L-shaped sofa made in Spain from iFurniture, a furniture company, for HK$25,000. Susan just see the sofa set from iFurniture's catalogue, she says that she would very much like to view the real sofa but that she is out of town on a five-day business trip and will not be able to view it until she returns. The boss of iFurniture, Lucas says that if another buyer comes forward, he will have to sell the sofa to that buyer. Susan says she will pay HK$2,500 if iFurniture promises not to sell the sofa to another buyer for the next five days. Lucas agrees to this. Analyse whether any contract has been made between the parties and, if so, what +are its terms? Refer to the relevant case law to support your answer.

(d)Harry completes the contracted design work, but Susan only pays HK$300,000, instead of the HK$500,000 originally agreed. Advise Harry of his legal position.

Support and illustrate your answer with references to relevant case law.