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Problem question Discuss the following situations, focusing on whether or not the parties involved have the capacity to contract and, if so, to what extent is any resulting contract binding: Lukas is 13 years old. He enters into a contract with Leah (an adult) to purchase of a guitar. Leah then decides that she does not wish to sell the guitar and alleges that no valid contract exists as Lukas is too young to be able to enter into a legally binding contract. Is Leah correct? Would your answer differ if Lukas changed his mind and did not wish to purchase the guitar, but Leah wished to enforce the agreement? Ross is mentally disabled. He enters his local BMW showroom and enters into an agreement to purchase a new M3 coupe for $50,000. Ross later regrets entering into the agreement and argues that, due to his mental disability, the agreement is not binding. Is he correct? Louise decides to leave school at the age of 16, once she hears that a friend is looking for an apprentice for his carpentry firm. Louise enters into a contract that states that she shall be an apprentice of the firm. A week before she is due to start work, she changes her mind and decides to complete her A Levels. Does the carpenter have a cause of action against Louise? Georgie enters into a contract to rent a small flat when she is 17 years and 10 months old. The contract provides that her tenancy shall last a minimum of 12 months, after which time she can cancel the agreement by giving one months notice. Eight months later, she cancels the agreement, arguing that as she made the contract when she was a minor, it is not binding on her. Can Georgie cancel the contract? Ceri is walking home one Saturday night after spending an evening in the pub with her friends. She has drunk two bottles of wine and is clearly drunk. She walks into a local 24-hour supermarket and buys three mobile phones, four jackets and three bottles of Moet & Chandon champagne at a total cost of $600. The next day she takes the purchases back to the supermarket and argues that, as she was drunk, no contract exists and she should be entitled to her money back. Is she entitled to recover the f600? Lukas is 13 years old. He enters into a contract with Leah (an adult) to purchase a guitar. Leah then decides that she does not wish to sell the guitar and alleges that no valid contract exists as Lukas is too young to be able to enter into a legally binding contract. Is Leah correct? Would your answer differ ifCeri is walking home one Saturday night after spending an evening in the pub with her friends. She has drunk two bottles of wine and is clearly drunk. She walks into a local 24-hour supermarket and buys three mobile phones, four jackets and three bottles of Moet & Chandon champagne at a total cost of f600. The next day she takes the purchases back to the supermarket and argues that, as she was drunk, no contract exists and she should be entitled to her money back. Is she entitled to recover the $600?1) (a) What are the essential elements of a binding contract under the Law of Contract? (b) What are the main ways in which a contract can be discharged? 2) Briefly explain the following with reference to the contents of a contract: (a) Terms. (b) Conditions. (c) Warranties. (d) Innominate terms 3) Sarath, a sole proprietor displays a "Diana Model Hand Bag" in his shop window, with the price marked on it as Rs.25,000/-. Priyanka visited the shop and told Sarath that she was willing to buy it for Rs.20,000/-. Sarath replied that he could give it only for Rs.22,000/-, but Priyanka insisted that she was willing to pay only Rs.20,000/- and left the shop. However, Priyanka realized that it was worth Rs.22,000/- and returned to the shop to buy the hand bag for Rs.22,000/-. Sarath refused to sell it. In the meantime, Seetha visited the shop and expressed her willingness to purchase it for the price marked on it. Sarath refused to sell the hand bag to both Priyanka and Seetha. Advise Sarath whether there is a contractual obligation binding him with Priyanka and Seetha on this incident. 4) Define the term "Misrepresentation" in relation to the Law of Contract and explain two(02) types of Misrepresentation. 5) "Acceptance of an Offer Forms a Binding Contract". Explain whether there is a binding contract in the following instances: a) "A" offers to sell his harvest of tomatoes to "B" at Rs. 150/- per kilogram. b) "X" offers to let his business premises to "Y" for Rs. 10,000/- per month until the situation in the country returns to normalcy. c) "C" who purchases a horse from "D" agreed to pay an additional sum to "D" if the horse wins at the horse races. d) A company agrees with "X" that on the expiry of the existing contract of "X" with the company, the company would favourably consider an application by "X" for the renewal of his contract. 6) "An agreement between the parties is an essential element of a contract, but every such agreement does not form a valid contract". Do you agree with this statement? Justify your answer with reference to the Law of Contract. 7) "Saman, a keen collector of old cars has seen an advertisement for an auction of old cars in a weekend newspaper. He travelled to Colombo from Badulla to attend the auction in order to bid for the model mentioned in the list of vehicles to be auctioned. However, when Saman arrived at the auction site, he found a notice outside stating that the auction has been cancelled". Saman contemplates legal action against the auctioneer. In the context of law of contract, advise Saman whether he can succeed in an action against the auctioneer. Give reasons for your answer.Deltas is 13 years old. He enters into a contract with Leah {an adult} to purchase a guitar. Leah then he Ides that she does not wash to sell the guitar and alleges that no valid contract exists as Lulras ls too young to be able to enter into a legally binding contract. ls Leah correct? Would your answer dl'er if An either-way offence is being heard summarily in a magistrates' court. There is a decision of the Crown Court that involves similar facts. Are the magistrates' obliged to follow the decision of the Crown Court