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Virus Sniper Ltd (VSL) has recently developed a vaccine for the Coronavirus

Disease 2019 (COVID-19) called COVID Cleaner. After rigorous clinical tests,

it is ready for release into the market. The company posted the following

advertisement in the Hong Kong Morning Post:

COVID CLEANER

HK$10,000 reward will be paid to any person who purchases our

vaccine COVID CLEANER but is still infected with the

Coronavirus Disease 2019 after injection of two doses of the

vaccine in one month by our company according to the printed

instructions.

As a sign of good faith, HK$1,000,000 has been deposited in the

Millionaire Bank for security of the reward.

Having read the advertisement above, Mr. Fong purchased the vaccine COVID

Cleaner from VSL and had received injection of two doses in one month by VSL

according to the instructions. However, one day last month, Mr. Fong was feeling

headache, tired and having a shortness of breath. He visited a medical doctor and

was tested positive for the COVID-19. He was immediately sent to the hospital

for quarantine and medical treatment. Receiving a treatment for 3 weeks, he had

recovered completely. After being discharged from the hospital, Mr. Fong

intended to claim VSL for the reward of HK$10,000.

Required:

(i) Explain whether the advertisement placed on the newspaper by VSL is an

offer or an invitation to treat. You are required to cite a relevant case in your

explanation. (14 marks)

(ii) Explain whether valid consideration exists in the agreement between VSL

and Mr. Fong to constitute a legally binding contract in this case.

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On 10 March, VSL offered to sell a batch of COVID Cleaner to Peter, who ran

a pharmacy, for HK$1 million. After Peter inspected the vaccines, he paid HK$

200,000 to VSL requesting the company to wait for his decision until 30 March.

VSL agreed and accepted the payment. On 20 March, VSL found that the market

was in shortage of COVID-19 vaccine and the company reached another buyer

who offered a much higher price for the vaccines. VSL had immediately sold all

the vaccines in stock to this buyer and had no more vaccines to sell to Peter. At

the same time, VSL told Peter that the companys previous offer in selling him

the COVID Cleaner was cancelled with immediate effect.

Required:

Advise whether Peter has the legal right to sue VSL for breach of contract and

claim for damages. You are required to cite a relevant case in your explanation.

(8 marks)