QUESTION 1

In the following scenario you need to ascertain whether a contract was formed between the parties.

In order to do so, you need to analyse the events that occurred by selecting words from the list below that best describe the events in each of the 12 paragraphs of the scenario:

Offer,Acceptance,Invitation to treat,Rejection of offer,Counter-offer,

Request for information, Supply of information

Ivan receives a catalogue in his letter box from Klein Electronics store advertising mobile telephones and other electronic equipment. The catalogue shows product prices.

He visits the store and selects a Prima Z1 laptop from the shelf and approaches the counter. It has a marked price of $600.

He tells the shop assistant he will definitely buy it provided he receives a 10% discount on the marked price.

The shop assistant refuses suggesting only a 5% discount.

Ivan does not think that is enough and says he will continue to browse, looking at other products on the shelves.

He notices a Bandung Note14 laptop on the shelf and takes it to the counter.

The sales assistant advises him that the item is not for sale and should have been withdrawn from stock as there had been problems with its battery causing the unit to catch fire.

The sales assistant advises him that a new line- the Bandung Note 15- is available with a few in stock at the back of the store. He is told Note 15 does not have the technical problems of the Note 14 and has a bigger memory and processor and costs only $550.

Impressed by this, Ivan asks whether it comes with a 12 month warranty and the shop assistant confirms this.

Ivan agrees immediately to buy it and the shop assistant responds that Ivan has made a good choice, returning a few minutes later with a unit.

However, on seeing it, Ivan is not impressed with the colour or keyboard configuration and declines to buy it.

The shop assistant insists that he must buy it claiming that a contract had been made.