Revision for exam: STUDY UNIT 2

Q1.Jonathan was trying to sell his yacht as he had lost interest in sea-related activities. He heard from his wife that Bobby, an acquaintance of hers, was interested in buying a boat. So Jonathan promptly wrote a lettertoBobby,offeringtosellthelatterhisyachtforS$300,000.Thelettersetoutthemodel,yearof manufacture and various specifications of the yacht.

When Bobby received the letter on Monday morning, he immediately called Jonathan and discussed the technical specifications of the yacht.By the end of the telephone discussion, Bobby said that he was "keen to buy the yacht" and asked if there was anything else that Jonathan required. Jonathan responded that he wanted written confirmation of Bobby's acceptance since the transaction involved a large sum of money and Jonathan had to process and submit a lot of paperwork to the maritime authority prior to the actual sale.

Jonathan said that if he received a letter of acceptance from Bobby by 5.00pm by Wednesday, Jonathan would proceed with the sale at S$300,000. Bobby promptly typed out and posted a letter of acceptance on Mondayafternoon.ByMondayevening,Bobbyhadsoldpartofhisequityportfoliotogetreadythe purchase price of S$300,000.Jonathan received Bobby's letter at 12 noon on Wednesday.

However,onMondaynight,Jonathanchangedhismindaboutsellinghisyacht.Hewroteandposteda letter to Bobby, withdrawing his offer.Bobby received this letter on Tuesday.

Advise Bobby whether there is a valid contract between Jonathan and him. In your analysis, discuss the four (4) elements of a valid contract.

STUDY UNIT 3

Q2.Zachary wants to build a decorative wall on his balcony, so that he can hang his flowering plants and creepers.

He visited TrustMe Dcors Pte Ltd, a Singapore interior design and construction company. Mr. Lee from TrustMe advised Zachary that he should install a new type of wall, made from RePlas. It is a new type of buildingmaterial,madeinGermanyfromrecycledplastic.Mr.LeesaidthatRePlaswasaverystable compound and can withstand huge amount of stress and weight, more than suitable for Zachary's intended use.

Zachary expressed his concern that new types of building materials are typically problematic since workers are usually not trained properly to handle such materials. Mr. Lee assured Zachary that all its workers had traininginusingRePlastoconstructwalls.ZacharywasscepticalandaskedwhattypeoftrainingMr. Lee'sworkershadreceived.HeaskedifthetrainingwasconductedbyprofessionalsinGermanyashe only trusted training from the manufacturer. Mr. Lee laughed and said, "Don't worry, all my workers are trained properly."He further added, "We are the most famous in building walls."

Upon hearing that, Zachary went ahead to order the wall. Two months after the wall was constructed by TrustMe, it started sagging and there was water seepage.Not long after, the wall collapsed.

ZacharywentonlineanddidasearchonTrustMeanddiscoveredmanynetizenscomplainingabout TrustMe.Anex-employeeevenbloggedthattheworkersatTrustMehadneverreceivedanytrainingin using RePlas, and no one from the German manufacturer had explained to them how to use RePlas.

Advise Zachary on whether he can sue TrustMe for breach of contractual terms. In your analysis, identify and analyse the nature of the statements made by Mr. Lee, on behalf of TrustMe.