QUESTION 3 Tom negotiates with Marion for the purchase of three brand new cars which he had seen advertised in the local newspaper for 10,000 each. They are both local car dealers. Consider the legal position of the buyer in relation to English law of contract and the Sale of Goods Act 1979 (as amended) in the following distinct situations:

(a) Tom asks Marion to hold-on to the cars for a day or two until he gets a bank loan for the cars. Marion accepts, but when Tom visits Marion's showroom the following day he is informed that Marion had sold the cars.

(b)Tom asks Marion to hold-on to the cars for a day or two until he gets a bank loan for the cars. Marion says that she will keep the cars for three days, but as there are other interested parties for the three cars, she will only do this If Tom paid her 15,000 as a deposit. If after the three days Tom proceeded to buy the three cars his deposit will be subtracted from the total purchase price of 30,000. If, however, Tom did not proceed with the purchase in three days, she will keep the deposit as "compensation" for not selling the cars for three days. They both agree on these terms, and Tom pays 15,000. However, a day later Tom phones Marion to say that he will not proceed with the purchase as he found similar cars cheaper elsewhere. Marion keeps Tom's deposit (15,000) and sells the cars to another buyer at the same price (30,000).

(c) Tom buys the three brand-new cars from Marion. Upon delivery and inspection of the three cars, Tom sees that all three have slight scratches on the doors.