Sam Lee is an ambitious er tumed entrepreneur o is looking to expand his food coult business. He has been buying up small coffee shops around Singapore, especially from elderly owners who are getting ready to retire and wish to sell their business for a profit. Sam met with Uncle Peng, his father' s brother, who was the owner of a small coffee shop called "PENG PENG" in the northem part of Singapore. Uncle Peng was getting on in years and lamented that his children did not want to take over the business. He told Sam that he wanted to sell his coffee shop business so he could retire and travel around the world. He funher said that his coffee shop was recently valued at $3 million. Sam was excited at the idea and made an offer of $3 million on the spot to Uncle Peng. Uncle Peng was sulprised and asked Sam if there were any telms that they needed to finalise. Sam replied by saying, "We are family and we should tmst each other. We don't need to spend money on lawyers to complicate matters with so many tenns. " However, Sam tried to address Uncle Peng's concerns by scribbling on a piece of paper the following statement: "Uncle Peng will sell his coffee shop (PENG PENG), located at 2 Lorong Chuan, to Samfor $3 million, subject tofinai termls (if any) being agreed within I week. ' Sam proceeded to sign on the piece of paper, before offefing it to Uncle Peng to sign. Uncle Peng also signed on the piece of paper. Sam and Uncle Peng also shook hands. The next day, Uncle Peng announced to all his employees, customers and suppliers that he had sold PENG to Sam and they should immediately start dealing with Sam. Sam also staned to liquidate some of his stock investments in order to raise funds to finance the purchase of the coffee shop. However, when Uncle Peng tumed up at Sam's office turo days later to execute the fonnal paperwork, Sam told Uncle Peng that he no longer wanted to buy the business.