Valerie spots a rosewood bookcase in an antique shop owned by Jim and Belinda, which has a price tag of $4000. Valerie approaches Jim and tells him thatshe will take the bookcase for $2000. Jim says that it isn'tpossible but how about $3000? Valerie says no, how about $2,500? Jim says no again, and he tells Valerie that his lowest price is $3000. Valerie does not reply that she will accept the bookcase for $3000 and she steps away from Jim to take a call on her mobile phone. While Valerie is talking on her mobile phone, Jim turns to serve another customer Isabella. After finish talking on her mobile phone, Valerie then turns to pay for the bookcase, but Jim says he has already sold it to Isabella for $4000. Valerie is furious and says that she and Jim had a contract, and the bookcase was hers.

1. As between Valerie and Jim, who made the offer? (4 marks)
2. As between Valerie and Jim, who accepted the offer and was the acceptance valid? (3 marks)

Jim's wife Belinda runs the rare stamps section of the business and conducts much ofthe business through the post. On Monday, she wrote separate letters to two of her regular customers, Eddie and Joseph, offering to sell them some rare stamps for $1500. Eddie receivedBelinda's letter at 5 pm on Tuesdayand immediately posted a letter of acceptance to Belinda on Wednesday at 9 am. Joseph also received Belinda's letter of offeron Tuesday, and went to Belinda's shop at10 am on Wednesday and happily bought the rare stamps. OnThursday, Belinda received Eddie's letter of acceptance and consequently Belinda telephoned Eddie andinformed him that she had already sold the stamps to Joseph. Eddie is certain that he is entitled to the stamps.

3. Is Eddie correct to say that he is entitled to the stamps by arguing that his letter of acceptance was effective? (3 marks)

Jim and Belinda frequently exhibit their rare stamps and antique collection to promote their business. Belinda asks one of her sisters, Nicky who is looking for a job to organise and exhibit their collection. Belinda isoverjoyed with Nicky's performance and shedoes not want Nicky to stop helping her. A couple of months later, Nicky receives a good job offer from the National Philatelic Gallery. Belinda tells Nicky that if she stays to work for her until the end of the current exhibition, she will "give her some ofthe rarest stamps in hercollection that are worth a lot of money". Nicky agrees to give up her good job, so Belinda asks her lawyer to record her promise in a written agreement. A month after the exhibition has ended, Belinda refuses to hand over the rarest stamps to Nicky and she tells Nicky that agreements between family members are not binding.

4. Can Nicky enforce the agreement against her sister, Belinda? (5 marks)

Jim has been hiding a secret from Belinda that he has a girlfriend, Sheena for the last 5 years. They met when they were enrolled in a website design class. Jim has been spoiling Sheena by giving her a lot of money every month. Recently, they have been quarrelling a lot and Jim has decided to recover the money he has given to Sheena. He says to his lawyer that the money had been a loan, not a gift. Sheena disagrees and claims that the money had been a gift. After they have calmed down, they meet up to patch things up. Jim and Sheena draft and sign a document before Jim gives it to his lawyer to formalise it. In the document, Jim agrees that he will not recover the money he has given to Sheena, but that Sheena is to help him in his online business that has not been doing well.In exchange for Jim's promise,Sheena agrees to help Jim with his online business because Jim needs Sheena'swebsite design skills to improve his online business.

5. Has Sheena given valid consideration forJim's promise?