Question 1

Allan posts a letter to Martin on September 15 informing her that he is selling his Rav 4 for $4m and he is to let him know if he is interested in purchasing the same by September 30. Martin received the letter on the 17th and mailed his response immediately agreeing to purchase the Rav 4, however, the post office misplaced the letter and Allan did not receive it until October 5, by this time he had sold the vehicle. Martin has now come to retrieve the vehicle. Allan told his wife Sandra in October that as of November 30 he would give her $60,000 monthly for house expenses and food, however, due to a failed financial deal he had no money to give her in November and Sandra is contemplating suing Allan for breach of contract. Allan was discussing with his friend Peter what had happened as they were on their way to a restaurant for lunch. At the entrance to the car park, there was a sign stating that "Management will not accept any responsibility for theft or destruction of any kind to any motor vehicle parked in the car park." It was also in the contract given to him to sign by a parking attendant. Allan signed the contract without reading it. When he returned to the parking lot, he discovered his windshield broken. He filed a complaint with management, and they directed him to the contract. Peter told him he would be successful if he sued the restaurant.

A. What advice would you give to Allan on ALL the matters above?

Question 2

Frank is an antique dealer and a world-famous authority on eighteenth-century French furniture. Clive, who has just bought an old house and wishes to buy antique furniture for it, admires a set of dining chairs in Frank's antique Shop. Frank tells him that the chairs are 'undoubtedly eighteenth century' and 'might well have come from Versailles itself.' Clive pays $80, 000 for the chairs and takes them home. Two days later Clive is polishing one of the chairs and sees a label underneath the seat which says: Made by Arnold Salbutomal, China 1927.' Clive finds this label on all the chairs and establishes very quickly that the label is correct. Arnold did make the chairs in 1927. The chairs are worth $20,000.00.

Frank's error is honest. He had bought the chairs in a sale at an old country house and did not bother to examine them closely.

REQUIRED

1. Advice Frank on this issue.

1. What remedies does Clive have against Frank?