Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tim who is a popular car dealer for the past 20 years negotiates with Mary for the purchase of three brand new cars which he

Tim who is a popular car dealer for the past 20 years negotiates with Mary 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 below:

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

(b) Tim asks Mary to hold-on to the cars for a day or two until he gets a bank loan for the cars. Mary says that she will keep the cars for three days, but as there are other interested parties for the three cars, she will only facilitate him if only he pays her 15,000 as a deposit. If after the three days Tim proceeded to buy the three cars his deposit will be subtracted from the total purchase price of 30,000. If, however, Tim 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 Tim pays 15,000. However, a day later Tim phones Mary to say that he will not proceed with the purchase as he found similar cars cheaper elsewhere. Mary keeps Tim's deposit (15,000) and sells the cars to another buyer at the same price (30,000).

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strengthening The Rule Of Law In Europe From A Common Concept To Mechanisms Of Implementation

Authors: Werner Schroeder

1st Edition

1509928871, 978-1509928873

More Books

Students also viewed these Law questions

Question

1. Too understand personal motivation.

Answered: 1 week ago