Mr. Smith owns a unique car, an Aston Martin DB6, that once belonged to Prince Charles. It is a true collector's item!

Mr. Jones is both a friend and occasional business associate of Mr. Smith.

Mr. Jones has wanted to buy Mr. Smith's Aston Martin for many years.

Mr. Smith invites Mr. Jones over to a Barbecue. They both consume a couple of beers and are enjoying a conversation.

During the conversation Mr. Smith mentions that he is considering selling his prized possession and Mr. Jones says "I will give you $1million for it tomorrow." Mr. Smith appears to be very pleased, shakes Mr. Jones' hand and says "You are on!"

The next day Mr. Jones turns up to Mr. Smith's house with his cheque book, with a view to paying for the car. When he does so Mr. Smith looks very solemn and says that he doesn't have a written contract with Mr. Jones and has decided to sell the car to Mrs. Williams.Mrs. Williams has said that she will pay $1.5 m for the car.

Mr. Jones is very angry and seeks advice on this from his lawyer, you. He really wants that Aston Martin!

Explain in detail whether or not Mr. Jones has a binding contract with Mr. Smith, what remedies he might have against Mr. Smith and what you believe is his likelihood of success.

12 marks (one mark for identifying the issue; four marks for the law; five marks for the application; two marks for the conclusion)