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Vincent is the owner of an art gallery. He sells paintings online. Vincent counterfeits a famous painting, My Memories , which was painted by a

Vincent is the owner of an art gallery. He sells paintings online. Vincent counterfeits a famous painting,My Memories, which was painted by a famous local painter, Delilah. Vincent offers the counterfeit for sale online. The advertisement states: "Genuine painting by Delilah, $300,000."

Leonardo is a private art collector. He emails Vincent, asking: "Is this an original painting by the famous artist, Delilah?" Vincent responds: "Yes." Leonardo purchases the painting for $300,000 immediately by clicking on the 'Buy' button. He was then brought to the Terms & Conditions. Without reading them, he clicked 'Accept'. The Terms & Conditions contained a statement that read "The seller disclaims all responsibility for fraud, misrepresentation, mistake or damage otherwise caused to the buyer." Leonardo paid for the painting using his credit card.

A week later, Leonardo decides to sellMy Memories. He takes a picture ofMy Memoriesand posts it on his Facebook wall as a public post. It states: "Genuine painting by Delilah for sale at $350,000. Reply me to accept the offer. First reply gets the painting. Pay me by cheque upon collection. Hurry!" He posts the exact same message with the same photo in a WhatsApp group chat he has with several other art collectors.

On the same day at 12 noon, Salvador sees the Facebook post. He sends a Facebook message to Leonardo, saying, "I accept your offer. I will pay you by cheque. Let me know when I can collect the painting." Leonardo is out running some errands and he does not see this message.

At 2 pm, Pablo, an art collector, sees WhatsApp message. He telephones Leonardo, who picks up immediately. Pablo informs Leonardo of his acceptance over the telephone. After Leonardo hangs up, he reads Salvador's Facebook message. Leonardo proceeds to deliver the painting to Pablo.

Pablo sends the painting for an appraisal by a professional art valuer, and discovers that it is a counterfeit. Pablo bumps into Salvador, his old classmate, and discovers that Salvador had sent a Facebook message to Leonardo before Pablo's telephone call.

  1. Advise Pablo and Salvador on their legal options on the formation of contracts.
  2. Assume that Leonardo has not soldMy Memories. Advise Leonardo on his legal rights against Vincent.

Assume that Vincent's sold the originalMy Memoriespainting, painted by Delilah, to Leonardo. Leonardo hit his credit limit and fails to pay Vincent. Vincent demands payment. Leonardo responds: "I don't have enough money. Could you wait another 3 months? Alternatively, I can pay you $100,000 immediately if you agree to treat it as full payment for the painting." Vincent agrees, and is paid $100,000.

3.Advise Vincent on his rights against Leonardo.

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