Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ariana 1s the owner of a chain of restaurants that serve seafood-based cuisine. Given the current global focus on sustamability, Ariana decided that she would

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Ariana 1s the owner of a chain of restaurants that serve seafood-based cuisine. Given the current global focus on sustamability, Ariana decided that she would only purchase seafood from suppliers which are certified by the Aquaculture Stewardship Council (\"ASC\"). The ASC 1s an independent and not-for-profit organisation which establishes standards on farmed seafood, and thus promotes sustainable aquaculture. Ariana further decided to conduct a competitive tender process in order to find and engage the best supplier. As a start to the tender process. she took out advertisements in relevant industry publications to invite interested seafood suppliers to submit their tender proposals, which should essentially set out their intention to be Ariana's seafood supplier, their confirmation that they are ASC-certified, and their proposed pricing on certain common seafood 1tems. Ursula's Seafood Farm (\"USF\") was one of the seafood suppliers that responded to Ariana's advertisements. Given USF's attractive pricing and ASC certification, Ariana decided that she would engage USF. Accordingly, Ariana issued a letter to USF stating that she has accepted USF's tender proposal and USF has been officially appointed to be her seafood supplier. USF received this letter and was delighted to be officially appointed as Ariana's supplier. Explain whether there 1s a valid contract between Ariana and USF to appoint USF as Ariana's seafood supplier. In your answer, you should identify and discuss the four (4) elements of a contract. You should also explain the legal significance (if any) of the advertisements that Ariana placed in the industry publications at the start of the tender process. Question 2 "Bags R Us" ("BRU') is a retail shop that sells various types of bags and accessories. They obtain their merchandise from a manufacturer called "Everything Manufacturing" ("EM"). BRU wanted to purchase 100 units of a particular model of messenger bag from EM. However, BRU was concerned about the type of material used to construct the bag and whether it would be sufficiently water-repellent. Therefore, BRU specifically emailed EM to enquire on this issue. BUS201 Copyright @ 2023 Singapore University of Social Sciences (SUSS) Examination - July Semester 2023 Page 2 of 4 In fact, these messenger bags were made from ordinary cotton fabric, which is not water-repellent. While EM was aware of this fact, EM wanted to quickly dispose of them. Hoping that BRU will not be able to spot the difference in the materials, EM replied to BRU via email: "No worries, the messenger bag is made from a premium material called 'Cordura', which is extremely water-repellent". After receiving the assurance that the material is water-repellent, BRU entered into the contract with EM to purchase the messenger bags. When the messenger bags were delivered to BRU, BRU carefully inspected them and found that they were made from ordinary cotton fabric and not Cordura. The ordinary cotton fabric is a much cheaper material and is not water-repellent at all For this Question 2, assume that the following statement made by EM to BRU is a representation (and not a contract term): "No worries, the messenger bag is made from a premium material called 'Cordura', which is extremely water-repellent". Based on the facts and circumstances given in the scenario in relation to this representation, discuss and conclude whether BRU would be entitled to rescind the contract with EM on the basis of misrepresentation. (In your answer, you should also briefly discuss the different categories of misrepresentation and the limits to rescission.)L l.LIiL':} Question 3 Mr. Wong owns a small plot of land. and he wishes to build two struchures en it a house and a garage. Mr. Wong entered into a comtract with Mr. Chan, a building contractor, to build the two structures for him. The contract price was fixed at $300,000, comprising $220,000 for the house and $80,000 for the garage. The two structures were stated as separate items (with separate price components) in the contract. A few months after construction started. Mr. Chan realised that he could not find enough workers to help him with Mr. Wong's project. due to him taking on too many other projects at the same time. At that time, he had already completed the construction of the garage, but he had only started preliminary work on the house (which is estimated to be about 5% of the total work to be done for the house). Mr. Chan decided that he could no longer continue to work on Mr. Wong's project due to his difficulties. Mr. Wong had no choice but to engage another person to take over the project. After deing s, he discovered that the garage was not built according to the agreed specifications. It was supposed to be built with a beight of 4 metres, but Mr. Chan had bult it with a height of 4.05 metres. This deviation did not affect the intended function of the garage. Examine whether the contract between Mr. Wong and Mr. Chan has been discharged by performance. and conchude whether Mr. Chan 15 entitled to any payment for the work that he has done. In your answer, you should discuss the precise performance rule and all of the exceptions. Question 4 Firdaus is a chef who owns a restaurant and food catering business called "First Kitchen". As he is often kept busy in the restaurant's kitchen, he decided to hire a business graduate, Katrina, to help him with other aspects of his business. Firdaus strongly believed in Katrina's competence, and gave her express authority to handle all contractual arrangements relating to the business. Firdaus told Katrina that the only exception was that Firdaus wanted to be consulted before they take on any catering job. This is because there have been media reports of food poisoning incidents involving caterers, and Firdaus wanted to ensure that food quality and safety standards can be maintained before they take on any catering job. One day, Katrina met with a representative from a real estate company called Property Land ("PropLand"). PropLand wanted to cater food for a major corporate event, and wanted to know quickly if First Kitchen would be able to take on the catering job. PropLand also offered to issue Katrina with shopping vouchers worth $1,000 as part of the deal. As Firdaus was overseas at that time, Katrina did not want to trouble him on this matter, and agreed to take on the catering job with PropLand given that it represented a massive business opportunity. Katrina did not realise at that time that there would be a food safety risk with this catering job which has arisen due to PropLand's special requirements. As Katrina did not have Firdaus' banking account details at that time, she asked PropLand to make electronic payment to her personal banking account. When Firdaus returned from his overseas trip and found out about this catering job, he was very upset with Katrina. Sensing his bad mood, Katrina decided not to tell him about the shopping vouchers that she had received from PropLand. Outline the five (5) duties of an agent (which are owed to the principal), and analyse whether Katrina has breached these duties in her relationship with Firdaus based on the given scenario. (In your answer, you should also define the concept of "agency" and identify who is the principal, agent and third party in this scenario.)Charlotte owns an original and expensive painting. One day, she decided to sell the painting via an auction process that she would conduct herself (1.e.. she would be the auctioneer). She placed an advertisement on a public website called \"Art Collectibles\Betty was browsing an online marketplace for secondhand items when she found a listing for a watch with a unique design and a metallic strap. which was being advertised for sale by a person named Sharon. Betty was keen to buy the watch due to its unique design. She contacted Sharon and texted her the following question, \"What is the material used for the watch strap?\" Sharon replied to Betty, \"The watch strap is made of titanium, I think\". Actually, Sharon was unsure about this, and even though she (i.e. Sharon) could have checked with the shop where she had originally bought the watch. she did not do so as she found 1t troublesome. Betty was delighted when she read Sharon's reply. as titanium 1s a premmum material that 1s lightweight and durable. Betty agreed to purchase the watch, and she made payment to Sharon. When the watched was delivered to Betty, she found the strap to be unexpectedly heavy, and therefore unlikely to be made of titanium. When she brought the watch to a watch shop to be examined by an expert, she was told that the strap 1s made of stainless steel (which 1s a cheaper material). For this Question 3, assume that the following statement made by Sharon to Betty is a representation (and not a contract term): \"The watch strap is made of titanium, I think\". Based on the facts and circumstances given in the scenario in relation to this representation, discuss and conclude whether Betty would be entitled to rescind the contract with Sharon on the basis of misrepresentation. [Word limit = 900 words]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Law Text and Cases

Authors: Kenneth Clarkson, Roger LeRoy Miller, Frank Cross

13th edition

1285185242, 978-1285185248

More Books

Students also viewed these Law questions

Question

What are six categories of nonverbal cues?

Answered: 1 week ago

Question

What was the first language you learned to speak?

Answered: 1 week ago