(a) Karl posts a notice on his Facebook page which says, "I've just bought a new car. I need to sell my old one. I'll accept $400 for it. At that price you can't gowrong."

Lennie reads Karl's Facebook page and sends a text to Karl saying, "I'll buy your car. I've got the $400. I'll give it to you at this afternoon's Comlaw 101 lecture."

When Karl and Lennie meet Karl tells him that unfortunately he has had a minor accident that morning but the car "is not too badly scratched. You won't notice it."

Lennie refuses to hand over the $400. Karl insists, saying that Lennie has bought the car.

Advise Lennie as to his legal position.

(b) Ralph wants to have a surprise party for his mother on her 50th birthday but he is short of cash. At a family barbeque he explains his plan to his uncle Monty. He asks if he can borrow

$2,000 for the party. He explains that he will shortly be graduating from Auckland Uni and when he gets a job he will be able to repay the loan. Monty writes out a cheque on the spot and Ralph uses it to pay for the catering and alcohol at the party.

However Ralph has now decided to go on to postgraduate studies and will not be in a position to repay the loan.

Monty wants to be repaid. Advise him as to his legal position.