Mrs. Perera is 60 years old and interested in selling her holiday apartment in Coffs Harbour. She discussed the possible sale with her doctor, Dr. Jayasinghe, and with a local real estate agent, Mr. Bandara. Advise her of any rights IN CONTRACT LAW she may have in each of the following situations:

a. Dr. Jayasinghe suggests that he is happy to buy from her for Rs 3,000,000.00 (Rs30 Lakhs) and that they will save money by not putting the sale through an estate agent. Several weeks after she has signed and exchanged contracts with Dr. Jayasinghe she discovers that her property is probably worth at least Rs5,000,000.00 (Rs. 50lakhs) She does not want to complete the sale.

b. Mr. Bandara advises her that an auction will bring the best price for the property. He asks her to pay for all the advertising as well as a short article in the Sunday Observer "Real Estate" supplement; all of which will cost Rs120,000.00. He also asks her to sign an exclusive Agency Agreement for 2 months which will entitle him to commission of 10% of the sale price if he manages to sell the property during the two months. Mrs. Perera has now been advised that a commission is usually 2.5%-3% of the sale price and that most agents include advertising costs as part of their normal service during the standard 2 month agency.