Question 2 (25 marks) Part 1 Lum is from a wealthy family, while her boyfriend, Paris, relies on a part-time job for a living. Lum owns a Royal Royce car which has a market price of $1 million. Lum says to Paris, "Give me $1. This car will be yours!" Paris pays $1 and takes the car away. Later, Lum changes her mind and asks Paris to return the Royal Royce car to her. Whether Lum's claim will be successful. (9 marks) Note: Support your answer with contract law principles and authorities. You shall NOT discuss offer and/or acceptance. Part 2 Lum, "Do you really love me?" Paris, "Not sure." Lum, "If you really love me, I'll give you an apartment!" Paris, "OK, deal!" However, Lum changes her mind and refuses to give the apartment to Paris. Can Paris force Lum to give him the apartment? (3 marks) Part 3 Lum subsidizes Paris for opening a restaurant. She even works in the restaurant as a manageress every weekend voluntarily for two months. After Lum had stopped to help in the restaurant, Paris says to Lum. "If I eam a profit, I will pay for your help for the last two months!" However, he never pay Lum after there is a profit for the restaurant a few months later. Based on contract law, can Lum claim against Paris for the payment for her service? Ignore employment law issues. ( 5 marks) Part 4 A. Lum lends \$1 million to Paris for the opening of the restaurant. As Paris wants to save the profits from the restaurant as much as possible, he asks Lum, "May I just pay you $500,000 to settle the full loan?" Lum agrees. One month later, Lum changes her mind and asks Paris to pay her the unpaid balance of the loan. Whether Lum will succeed in her claim against Paris. (5 marks) B. The loan agreement is to repay the loan in one year. After 6 months, Lum asks Paris to repay just $500,000 to settle the full loan. After the payment of $500,000, can Lum change her mind later and asks Paris to pay the unpaid balance of the loan? (3 Question 2 (25 marks) Part 1 Lum is from a wealthy family, while her boyfriend, Paris, relies on a part-time job for a living. Lum owns a Royal Royce car which has a market price of $1 million. Lum says to Paris, "Give me $1. This car will be yours!" Paris pays $1 and takes the car away. Later, Lum changes her mind and asks Paris to return the Royal Royce car to her. Whether Lum's claim will be successful. (9 marks) Note: Support your answer with contract law principles and authorities. You shall NOT discuss offer and/or acceptance. Part 2 Lum, "Do you really love me?" Paris, "Not sure." Lum, "If you really love me, I'll give you an apartment!" Paris, "OK, deal!" However, Lum changes her mind and refuses to give the apartment to Paris. Can Paris force Lum to give him the apartment? (3 marks) Part 3 Lum subsidizes Paris for opening a restaurant. She even works in the restaurant as a manageress every weekend voluntarily for two months. After Lum had stopped to help in the restaurant, Paris says to Lum. "If I eam a profit, I will pay for your help for the last two months!" However, he never pay Lum after there is a profit for the restaurant a few months later. Based on contract law, can Lum claim against Paris for the payment for her service? Ignore employment law issues. ( 5 marks) Part 4 A. Lum lends \$1 million to Paris for the opening of the restaurant. As Paris wants to save the profits from the restaurant as much as possible, he asks Lum, "May I just pay you $500,000 to settle the full loan?" Lum agrees. One month later, Lum changes her mind and asks Paris to pay her the unpaid balance of the loan. Whether Lum will succeed in her claim against Paris. (5 marks) B. The loan agreement is to repay the loan in one year. After 6 months, Lum asks Paris to repay just $500,000 to settle the full loan. After the payment of $500,000, can Lum change her mind later and asks Paris to pay the unpaid balance of the loan? (3
