Topic 3

Elements of a Contract

1.In January, Bertha advertised in a classified column of a newspaper "brand new piano for sale at RM500.'This was a misprint, as the real price was supposed to be RM5,000.Alice responded to the advertisement by ringing up Bertha and placing an order of one piano for RM500.Alice is claiming that Bertha has a binding contract to supply the piano at that price, but Bertha disputes such a claim.

Is there a contract between Bertha and Alice?Give detailed reasons for your answer.

2.Jimmy offered to sell his yacht to Henry at a bargain price of RM300,000 but payment had to be made by depositing the full amount into his (Jimmy's) bank account by noon the next day.Henry wanted to buy the yacht but he was short of cash.He told Jimmy that he would deposit RM100,000 first into Jimmy's account and the balance 2 weeks later.Jimmy subsequently sells the yacht to another buyer.

Can Henry sue Jimmy for breach of contract?Give reasons for your answer.