Question 1

Ang is a motor dealer selling commercial vans. Last Monday he mistakenly placed a notice on one van indicating it was for sale for $55,000 when in fact its actual price was $95,000. Bert who wanted to purchase a van came to Ang's premises and noticed the sign. Upon recognising what a bargain it was, Bert immediately indicated to Ang that he accepted the offer and would take the van for $55,000.

Ang who realized it was the wrong price told Bert there had been a mistake and the correct price is $95,000. Bert insisted he was entitled to buy the car at $55,000, and when Ang refused to sell at that price, Bert said he would sue Ang.

After Bert left, Ang changed the price on the van to $95,000. Cathy then came to the shop and said she wants to buy the van but would have to arrange finance. On Tuesday Delvin came by and offered Ang the full $95,000 cash and Ang sold it to him.

Required

Advise Ang, Bert, Cathy and Delvin as to their rights and liabilities in the law of contract.

Question 2

Mark an expatriate from England wants to rent an up-market condominium unit at the most sought after Scotts Peak at Cairnhill. He informs the landlord, Jack that he is a successful management consultant and provides Jack his accountant's details with regards his financial standing. Jack then calls Mark's accountant, Herman, who is sole proprietor of HM Accountants and enquired about Mark's financial situation, Herman did not bother to check his files properly and confuses Mark with another client. Herman replies to Jack that Mark is an excellent client drawing a high income and recommends him as a tenant. The reference was supplied with the clause: 'HM Accountants nor Herman will not accept any liability for any inaccuracy contained in this reference, or for any loss incurred as a consequence.'

In reality, however, the 'Mark' in question here is in heavy debt to several banks with threats of lawsuits hanging over him by banks wishing to recover their money from him.

Some months after taking up the condominium unit, Mark owed tens of thousands of dollars' in rent arrears and unpaid utilities bills and has now vanished.

Required

Discuss whether Jack can recover his losses from Herman or HM Accountants.