Question
Referencing Wherever possible, relevant authorities (such as cases and/or legislation) should be included as part of your answers and referred to in support of your
Referencing
Wherever possible, relevant authorities (such as cases and/or legislation) should be included as part of
your answers and referred to in support of your statements and assertions. Appropriate referencing of
such authorities in your answer can contribute to the marks you receive for a question.
1
LAWS 1018 Business Law Assignment April 2021
Your written work should use the referencing styles set out in the Harvard Referencing Guide - user
friendly or the Australian Guide to Legal Citation, published by the Melbourne University Law Review
Association (for which there is a link on the Business Law Moodle course site). These are listed on the
Portal for Business Law.
Instructions
Read the following factual accounts and answer ALL of the questions with reference to the
principles of law covered in the following lectures:
Topic 6: Australian Consumer Law
Topic 7(1): Contract Law - Part 1
Question 2
In January 2021 Kate, who is from Adelaide, went to Melbourne, Victoria, to attend a convention
on international trade. While she was there she met Ben, who was also attending the
convention. On one occasion Ben casually mentioned to Kate that he was thinking of selling his
car, a 2016 Honda Civic.
Kate was thinking of replacing her old car with a car which was more new, so after she returned
to Adelaide Kate wrote to Ben on February 15 asking if he would consider selling his car to her for
$13,000.
When he did not reply Kate wrote to Ben again on March 1, this time saying that she was
prepared to buy the Honda from Ben for $14,000.
Ben then wrote back stating that he was not prepared to sell it for anything less than $15,000.
Ben then proceeded to advertise the car for sale on the Internet website 'Gumtree' for $15,000.
However the responses he received were disappointing, and the highest offer he received was
LAWS 1018 Business Law Assignment April 2021 4
only $13,500. Ben then decided that perhaps he should sell the car to Kate after all, so on March
10 he posted a letter to Kate in which he told her she could have the car for $14,000.
When Kate received Ben's letter on March 12 she immediately went to her local post office and
posted a letter of acceptance to Ben agreeing to buy the car for $14,000. The next day (March
13) Ben received a phone call from Max who had seen the advertisement for the sale of the car
on 'Gumtree'. Max offered to buy the car for $15,000, which Ben promptly accepted. Ben then
immediately telephoned Kate informing her that the car was no longer for sale. Kate was then
very angry and insisted that Ben must sell it to her for $14,000.
(5) Apply the rules for offer and acceptance to explain the legal effect of the various
negotiations that took place between Ben and Kate.
[3 marks]
(6) Explain whether or not Ben is required to sell the car to Kate and at what price.
[3 marks]
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