Case Study (50 marks)

Circuit Bikes Pte Ltd ("CB") is a Singapore company that sells mountain bikes. CB recently setup its website www.circuitbikes.com (the "Site") to enable customers to purchase bikes online through the Site. The Site has a simple interface. It displays the different models of bikes along with their specifications and price. All customers need to do to put in an order for a bike is to complete and submit an online order form through the Site.

Prior to submission of an online order, the Site directs customers to the following terms and conditions ("T&Cs") on which CB supplies their products and services:

Clause (a): Upon submitting your order form on the Site, such order will be deemed to be unconditional upon transmission through the Site and CB shall be entitled to process such order without further consent from you.

Clause (b): CB reserves the right to accept or decline any and all orders received from or through the Site in our sole and absolute discretion. CB's acceptance of your order will take place when a confirmation email is sent to your registered email address, at which point a contract will come into existence between you and CB.

Clause (c): CB shall not be liable or responsible for any loss, injury or damage suffered by any person from the delivery, possession or use of any product sold through the Site.

In July 2020, CB decides to offer its Corona bikes on the Site at a discounted price. The sales offer displayed on the Site reads as follows:

"JULY SUPER SALE OFFER: Corona bikes for a bargain price of $1500!"

On 1 July 2020, Susan submits an online order form for a Corona bike through the Site for her boyfriend Sam as a gift for his birthday. Susan names Sam as recipient of the bike in the online order form with instructions for the bike to be delivered to Sam's home address. Susan receives an automated confirmation email from CB informing her that her order has been processed and confirmed.

On 2 July 2020, John, a biking enthusiast, submits an online order form for a Corona bike. However, John receives the following failed delivery message from the Site:

"We regret to inform you that your online order has not been submitted due to technical issues with our server.

Kindly provide your order by email to c..e@cb.com.

We will confirm your order by email to your registered email address with us."

John proceeds to send his order via email on the same day but does not receive a confirmation email from CB.

On 3 July 2020, John comes across another retailer selling the Corona bike at a cheaper price. John immediately sends an email to c..e@cb.com to cancel his order and follows up with a call to the customer service centre. At 10 am, John receives an email from CB acknowledging receipt of his email of 3 July 2020. At 10:05 am, John receives a confirmation email from CB informing him that his original order in his email of 2 July 2020 has been processed and confirmed. Apparently one of CB's employees at its customer service centre had gone ahead to process John's order in his email of 2 July 2020 without prior knowledge of the recent communication between John and CB's customer service centre. John refuses to pay or take delivery of the bike.

On 3 July 2020, Susan's boyfriend Sam receives delivery of the bike from CB and takes it for a ride at the East Coast Park. While riding at the East Coast Park, the wheels of the bike detach, and Sam crashes his bike. Sam was in a coma for three days and suffered multiple fractures to his arms and a broken leg. Sam's medical bill for his injuries came up to $21,000.

It was later discovered that CB's employees had forgotten to fasten the suspensions to the wheels of the bike prior to delivery. It is standard accepted practice for all mountain bike retailers in Singapore to ensure that all bikes sold are fully assembled and fit for use.

Your Assignment:

You are the management trainee at CB. The Manager at CB learns that you are reading Business Law and has requested you for some preliminary legal advice on the following:

Part 1: July Super Sale Offer

CB would like to know if the JULY SUPER SALE OFFER for the Corona bikes on its Site constitutes an offer from CB.

Part 2: Potential Claim against John

CB would like to know whether there is a valid contract formed between CB and John such that CB can bring a claim against John for breach of contract. CB would also like to know if your views would be different if CB had sent a confirmation email of John's order prior to 10 am on 3 July 2020.

Part 3: Potential Claim by Sam

CB would like to know whether Sam can bring a claim to recover his medical cost from CB even though Sam was not a party to the contract with CB. CB would also like to know if CB can rely on the exemption clause in Clause (c) of the T&Cs. In addition, CB has asked which court Sam is likely to start legal proceedings in, assuming Sam is able to sue CB.

Prepare a report to the Manager on the above matters.