Question 1

On 1 March Pita a resident of Suva, Fiji wrote and posted a letter to Deborah another resident of Suva, Fiji. In the letter Pita asked Deborah "Are you interested in selling your Suva property? And if so what is the price?" On 7th March Deborah wrote and posted a letter to Pita saying "I will sell you my Suva property for Fiji Dollar 600,000. Please give me have an answer by 15th March".

On 10 March Pita is told by a real estate agent in Suva that Deborah has already been offered Fiji Dollar 700,000 for the property by another person being Mr David Moses. The offer from Mr. David Moses to Deborah contains a term that the offer is subject to Mr. David Moses obtaining satisfactory finance to purchase the property from a bank.

On 11 March, Pita then receives the letter that Deborah wrote and posted to him on 7 March. Pita then immediately posted a letter back to Deborah on 11 March saying "I accept your offer". However, on 13th March Pita received a large and unexpected tax bill and changed his mind about the purchase. He immediately informed Deborah of this by sending Deborah a fax by fax machine on 13 March, which Deborah's fax machine received on the morning of 13 March and which Deborah read later that same day. The following morning on 14 March Deborah received Pita's letter of 11th March.

Deborah wishes to continue with the sale to Pita because she does not want a contract with Mr. Moses that is 'subject to contract'. She wants to sell the property immediately to Pita. However Pita does not want to proceed.

1. Advise Deborah if she can enforce the contract with Pita?

(b) Advise Pita if he can argue that there is no enforceable contract?

Question 2

Bale and Wei are negotiating about the sale and purchase of Bale's car. Bale says to Wei "I'll sell my car to you for $10,000." Wei says "I'm interested but would you sell it to me for $9,000?" Bale says "No, but I would take $9,500" Wei says "Ok deal- $9,500 and you give me the tool box of car repair equipment that is in the boot of your car". Bale thinks that this is a good deal but says nothing in response.

Do Bale and Wei have a binding agreement? Use IRAC method