QUESTION 1

Dr Dirk Dashing, the young and handsome general practitioner, mentions to his patient Penny Plain

that he is going to buy himself a new BMW as soon as he can sell his present car for a good price.

Penny explains that she is looking to buy a second-hand car herself and agrees to buy Dirk car for

$35,000. They arrange to meet in two days' time to exchange the car and a bank cheque. The next

day, Penny is told by her father that $35,000 is an excessive price to pay for the car.

Penny no longer wishes to proceed with the transaction. On what grounds, if any, could Penny avoid

liability?