Question 1 (30 marks) Alex wrote letters to Bella and other collectors of paintings by the artist Cabanel, stating: "I wish to sell my Cabanel painting, entitled 'Dancer', and I would like it to go to someone like you, who will really appreciate it. I may be prepared to sell it to you for $700,000". Bella immediately faxed a response, stating that she 'accepted Alex's offer'. Alex immediately sent a fax back stating that, "I am prepared to sell the painting to you, Bella but, on second thoughts, for $800,000, and that price is open until 5.30pm on Wednesday". On the following Monday morning, Alex sold the Cabanel painting to Dave, for $850,000. On Monday afternoon, Bella saw in an internet chat room for art collectors that Dave had bought a Cabanel painting. It did not identify the painting as 'Dancer'. On Tuesday morning, Bella posted a correctly stamped and addressed letter, stating that she 'accepted Alex's offer' to sell her 'his Cabanel painting for $800,000'. The letter arrived on Thursday morning. Required: Advise Bella as to her contractual position. Question 2 (40 marks) Daniel, who runs a minicab business, agreed to sell his second-hand car to Ethan for$50,000. This was a private arrangement. The sale agreement contained the following clauses: 3 This vehicle is sold as seen with no undertaking about suitability or condition. 8 The seller accepts no liability in respect of any damage, harm or injury arising from the use of the vehicle for any reason whatsoever, including, for the avoidance of doubt, negligence on the part of the seller. Ethan read the agreement before purchasing the car but did not sign it. That evening, while Ethan was taking his wife, Fanny, out for a spin in his new car, the brakes jammed. Ethan lost control and ran into a lamp pole. As a result of the accident, Ethan and Fanny were both injured. Ethan suffered a whiplash injury to his back from the impact and was unable to work for six weeks. Consequently, he lost $50,000 in business. An engineer discovered that the brakes had been dangerously corroded for some time and could have failed at any moment. Required: You are hired by Ethan to give him legal advice on the above matter. Prepare a report covering: (a) Ethan's rights as a consumer in the above private sale. (b) Ethan's rights if Daniel had sold the car to Ethan in the course of his business (rather than as a private sale). Question 3 (30 marks) While Ticker Wu, a famous golfer, was shopping in the East Supermarket, he slipped and fell on a wet floor in one of the corridors. The floor had recently been mopped by one of the supermarket's employees, but there were no signs warning customers that the floor in that area was wet. As a result of the fall, Wu injured his right arm and was unable to play golf for the next three months. Had he been able to play in the scheduled tournaments, he would have earned approximately $5,000,000 over that period of time. Wu sued the East Supermarket for this amount, plus another $10,000 in medical expenses. Wu claimed that the East Supermarket's failure to warn customers of the wet floor constituted negligence and therefore the Supermarket was liable for his injuries. Required: Will the court agree with Wu? Discuss the relevant issues based on the tort of negligence