Contract Tutorial Sheet 1B 1. Mark who is migrating on the 1st February sent a letter to Dan offering to sell him his boat for $3M. He was to return his acceptance in the course of Post. By a letter also dated the 1st February, Mark informed Joe that he was selling his Toyota Rav 4 car for $1, 500,000.00. He stated in the letter that the offer would remain open until February 28. Dan received Mark's letter on the 3rd February and returned his acceptance letter by post immediately and in the letter he stated that he would come with a cheque for $3M on February 7. However, Mark never received Dan's letter as it got lost in the post and sold the boat to Barak, his best friend on February 6, Joe upon receiving Mark's letter called him and informed him that in his opinion, the car was overpriced and he would only pay $200,000.00. This is rejected by Mark and eventually Joe said he would pay the $500,000.00. Mark informs him that he is not interested in selling the car to him anymore. Joe is upset and informed Mark that he will sue him for breach of contract as he has agreed to pay him the sum he requested. Dan turned up at Mark's house on the7th February and was informed that the boat was sold. Dan is livid and leaves telling Mark "you shall hear from my lawyer!". Advise Mark as follows: A. Identify the issues arising. 1. _______________________________ 2. __________________________________ 3. _____________________________________

B. Discuss the relevant legal principles and cases that support these principles __________________________________________________________________ __________________________________________________________________ __________________________________________________________________

Cases:

C. Apply these principles to the facts above. With respect to

issue 1 __________________________________________________________________

Issue 2-________________________________________________________________

Issue 3- __________________________________________________________________

D. Summarise your advice to Mark __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________

2. On Tuesday, September 10, John delivered a written offer to sell a house to Mary. The offer stated that "This offer is to be left over until Thursday, 10 o'clock, September 12." On Wednesday, John sold the house to Jill. Lance found out about the sale to Jill and told Mary. At 8 a.m. Thursday, Lance acting as the agent of Mary, handed John a letter of acceptance. John had also posted an offer to sell his car to Ken . On the 1st September, John posted a revocation of his offer. The offer from John was received by Ken on the 4th September and a letter of acceptance was sent the same day. On the 10th September, John's letter of revocation reached Ken.

Mary and Ken are contemplating suing John and John has come to you for advice. Advise John as follows:

1. Identify the issues arising.

2. Discuss the relevant legal principles and cases that support these principles

3. Apply these principles to the facts above.

4. Summarise your advice to John.

3. Craig has a Barrington Watson original painting for sale for $1M and advised John when he saw him at a meeting on January 10 that if he were interested in purchasing same he should: "....let me know by notice in writing on or before January 30 if you accept the terms of this offer ". John forgot about the meeting and about 4:30 pm on the 28th January, he ran to the post office and posted the letter to Craig. On February 1, Craig sold the painting to Marsha for $2M. John called him just as he was giving the painting to Marsha and asked him if he got the letter accepting his offer. Craig told him no and that the painting was sold, having not heard from him. John is contemplating suing Craig and has come to you for advice. Advise John. Advise John as follows:

1. Identify the issues arising.

2. Discuss the relevant legal principles and cases that support these principles

3. Apply these principles to the facts above. 3

4. Summarise your advice to John.

4. Define consideration and explain the requirements for consideration to be valid.

5. Christina is a 17 year old genius who is attending University. She is in need of an Ipad for online classes. She visited the Bookshop on her University campus and managed to use her persuasive skills to negotiate a contract with Bryan, the manager to purchase the Ipad for $100,000 and pay by 4 installments of $25,000.00 every 4 weeks. Christina made the first payment from her savings, received the IPad from Bryan but had difficulty finding the funds for the other payments and has defaulted. Bryan wants to sue her for the balance of $75,000.00. Whilst telling someone in his store about Christina, another student who overheard him asked him if he was talking about the 17 year old genius. Bryan is rather surprised upon hearing her age. He is seeking your advice as to whether or not he can recover the outstanding sum in Court. Advise Bryan.

6. Review the following cases and explain the legal principles discussed in them.

a. Cundy v. Lindsay

b. Lewis v. Avery

c. Car & Universal Finance Co. Ltd v. Caldwell

7.(a) With the use of cases, illustrate when an exemption clause may become a term of the contract.

(b) Duke and Duchess went on a weekend trip to Pleasure Hotel, Mobay. At the reception desk, they signed a contract form which they never read and paid for the weekend. One of the terms of the contract was that the cars of customers were parked at owners risk and that the hotel will not be responsible for looking after the cars.

On getting to their room, they found a notice pasted on the wall stating that the hotel will not be responsible for any missing or stolen items from the rooms. They read the notice but never took it seriously. On the last night of their stay, Duchess' diamond ring was stolen from her suitcase in the room and Duke's car was stolen from the hotel's parking lot. Both Duke and Duchess intend to bring an action against Pleasure Hotel for the cost of the ring and card.

Advise Duke and Duchess.