Scenario

Sarah is very keen on sailing and wants to purchase a yacht. Looking through the for sale advertisements on treegum, Sarah notices that Andy has a yacht for sale. Sarah contacts Andy and arranges to inspect the yacht. On Thursday afternoon Sarah and Andy meet at the local marina. Andy shows Sarah the yacht. Sarah is extremely happy with the yacht and has just one question. Sarah says that she will purchase the yacht from Andy only if it is less than 10 years old. Andy responds that he can guarantee that the yacht is only 5 years old. On that basis Sarah agrees to purchase the yacht.

Andy has a contract of sale drawn up which Sarah signs. Unfortunately for Sarah she discovers that the yacht is closer to 15 years old than the 5 that Andy claimed. Sarah approaches Andy with this information and demands her money back. Andy has a copy of the contract and explains to Sarah that none of the terms of the contract mention the age of the yacht. Andy explains to Sarah that they are only bound by the terms of the written contract.

Sarah is furious and tells Andy in no uncertain terms that she is going to seek legal advice.

Sarah approaches your firm and wants to know the following:

Advise Sarah of the following:

1. Will she be able to satisfy and prove the formation of a contract? Your answer should refer to relevant case law. (20 marks).
2. Part A can be answered using either an essay style or IRAC methodology.
3. How can Sarah have the oral clause addressing the age of the watch included in the contract and therefore defeat Andy's argument that the contract is in writing and the they are only bound by those terms. Your answer should refer to relevant case law (10 marks)
4. Part B must be answered using IRAC methodology.