Advise if Mr Chua will be able to enforce the contract against Marc.
10:03 AM Mon 19 Apr Marc is a private developer of properties. He owns a plot of land at Cashew Grove in Singapore and intends to develop the same into a twenty-storey condominium with full facilities However, in order to fully realise his design for the condominium, he needs to purchase the adjoining piece of land so that there will be sufcient space for the full range of facilities that he has in mind. Consider the following situations SEPARATELY AND INDEPENDENTLY. (a) Marc appoints his friend, Jasper, who is very well versed with the property market, to approach Mr Chua, the owner of the adjoining piece of land to negotiate the purchase of the said land. Mr Chua is aware that Marc owns the plot of land next to his and is intending to develop a condominium. Marc is worried that if Mr Chua nds out that Marc is the interested purchaser, Mr Chua may increase the price of the land as Mr Chua would realise that Marc is interested in purchasing his land in connection with the development of the condominium. Hence, Marc instructs Jasper not to reveal Marc's identity as the buyer. He further instructs Jasper that the purchase price should not be more than $40 million. Jasper would be paid a fee as agreed between Marc and Jasper if Jasper succeeds in concluding the purchase with Mr Chua. Jasper meets with Mr Chua and after some negotiation, Jasper realises that Mr Chua is only prepared to sell the land at a minimum price of $45 million. As Mr Chua was pressing Jasper in person urgently for an answer, in view of other keenly-interested parties, Jasper decided to quickly clinch the deal and sign the contract prepared by the lawyers for the purchase of the land at $45 million. Jasper thought that it was a good price bearing in mind the location and based on his knowledge and assessment of the property market. The contract was signed by JasPer in his personal name. After signing the contract, Jasper hurriedly informs Marc who was shocked to hear that the purchase price was higher than the amount of $40 million set by him. Jasper spent some time reassuring Marc and aer hearing Jasper's explanations, Marc was pacied and decided that $45 million was indeed a good price. As the contract had been signed, Marc decided it was time for him to inform Mr Chua that he was the actual buyer. He called Mr Chua informing him of the same and that he will be asking his lawyers to contact Mr Chua's lawyers for the follow up matters relating to completion of the sale. Subsequently, Marc found out that his bank will not be able to lend him the monies required to pay for the property and he informs Mr Chua that he was backing out of the purchase. Mr Chua was very upset as he had turned away all the other interested parties and was unlikely to secure another buyer at this price. Note: Question 2 continues on page 4 *
