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 for 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 to 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, who 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!"

Q. 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 Bella 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.