Question 1

Through much hard work and practice, Annie has become proficient in playing the piano. She

wanted to sell her current piano so that she can upgrade to a baby grand piano. She placed an

advertisement on GOTOSELL.com, a free online consumer

-to-consumer marketplace which

allows for the buying and selling of second-

hand household items. Her advertisement stated as

follows:

"Yamama Piano Model SUL 140, 2 years old, $3,000. Buyer to arrange for

delivery. Call or text 9xxx 8xxx."

On Monday, Bella happened to be looking to buy a second

-hand piano. She found Annie's

advertisement

on GOTOSELL.com. From the mobile number stated, Bella realised that Annie

was her friend from their weekly Zumba class, and she immediately texted Annie, "

Hello

Annie, this is Bella from your Zumba class! I am interested to buy your piano, will you sell for

$2,500?

" Annie replied, "

Hello Bella, the piano is still very new, I will only let go at $2,800.

"

Bella replied, "

OK, let me think about this for a few days, I need to ask my parents for a loan

first

", to which Annie replied, "

OK, I will keep the piano f

or you until the end of the week.

"

On Wednesday, Bella managed to obtain a loan from her parents and so she texted Annie, "

Hi

Annie, my parents agreed to the loan. I will buy your piano for $2,800 provided that you also

pay for the delivery of the piano t

o my place.

" Annie received and read the text message from

Bella. However, Annie did not immediately reply to Bella as Annie was not keen to pay for the

delivery charges.

On Thursday morning, Annie received a text message from a stranger called Charlie, w

ho saw

the advertisement on GOTOSELL.com. Charlie offered to buy the piano for $3,000, and he

was also willing to bear all the delivery charges. Annie was keen to sell the piano to Charlie,

but before doing so, she intended to explain the circumstances to Bella when they meet later

that evening for their Zumba class.

On Thursday evening, during the Zumba class, Annie noticed that Bella was absent. However,

Annie saw Bella's colleague, Denise, who also attended the same Zumba class. Annie told

Denise about the situation with the piano and how Annie has managed to find a better deal with

Charlie. Annie further asked Denise to tell Bella that Annie was no longer able to sell the piano

to Bella.

On Friday, Bella heard the news from Denise and Bella was furious

. She immediately texted

Annie: "

I thought we had a deal? You promised to keep the offer open until the end of the

week!

"

(a)

Explain

whether there is a valid offer and acceptance for the sale of the piano between

Annie and Bella.

(You are not required to

discuss the other two elements of

consideration and intention to create legal relations in the formation of a contract for

the sale of the piano.)

(65 marks)

BUS201

Tutor

-Marked

Assignment

SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS)

Page

5 of

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(b)

For this Question 1(b), assume that Annie and Bella disagree on whether there is a valid

contract for the sale of the piano between them, and they have decided to use mediation

to resolve their dispute.

Discuss the main features of mediation in the Singapore context, and describe how the

process of mediation may be used to help Annie and Bell

a resolve their dispute.

Among other things, your answer should address the following points:

How does the process of mediation start?

How should Annie and Bella go about choosing a mediator?

Are there any procedural rules or guidelines for the mediation

process?

What approach or role should the mediator adopt in the process?

Assuming Annie and Bella are able to reach a consensus at the end of the

mediation session, what should they do to ensure that their consensus can be

legally enforced?

In answering

this question, you may make reasonable assumptions where necessary to

support your answer. Where such assumptions are made, they should be clearly stated.

(35 marks)