DIPLOMA IN BUSINESS ADMINISTRATION
PRINCIPLES OF BUSINESS LAW (BA333)
TERM ONE 2006
Answer ALL questions.
Marks will be awarded for good presentation and thoroughness in your approach. •
NO marks will be awarded for the entire assignment if any part of it is found to be copied directly from printed materials or from another student. •
Complete this cover sheet and attach it to your assignment.
I declare that:
I understand what is meant by plagiarism.
The implications of plagiarism have been explained to me by my institution.
This assignment is all my own work and I have acknowledged any use of the published or unpublished works of other people.
Student's signature: JhenNee
Total number of pages including this cover page
Student's Full Name
GOH JHEN NEE
OFFICIAL USE ONLY
PRINCIPLES OF BUSINESS LAW
Allan put an advertisement in the local newspaper on 11 November to sell his sports car for $20,000. The advertisement explained very clearly the condition of the sports car.
On 12 November Benny called Allan and said he would be willing to pay $15,000 for the car. Allan said that he would only accept $18,000, and that he would let Benny have until 17 November to agree to this price.
On 14 November Benny wrote a cheque of $1,800 as a “ten percent deposit” and included this in a letter to say that he agreed to the price of $18,000. Allan received and read this letter on 16 November.
On 15 November Allan sold the sports car to his brother Alex for $17,000.
Discuss whether Allan and Benny have entered into a contract for the sports car.
Write short notes on the following:
a) Specific Performance
b) Condition and Warranty
c) Intention to Create Legal Relations
d) Valid Acceptance
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TABLE OF CONTENT
Number of Pages
Cover Paper – Goh Jhen Nee
Table of Content
Question 1 - Facts
Question 1 - Invitation to Treat
Question 1 - Advertisement
6 - 7
Question 1 - Offer
Question 1 - Counter-offer
9 - 10
Question 1 - Lapse of Time
Question 1 - Postal Rule
11 - 13
Question 1 - Held
Question 2 (a) - Specific Performance
15 - 16
Question 2 (b) - Condition and Warranty
16 - 17
Question 2 (c) - Intention to Create Legal Relations
18 - 20 5.3
Question 2 (d) – Valid Acceptance
22 - 23
Sequence of Events
Allan put an advertisement in the local newspaper to sell his sports car for $20,000 and the advertisement explained very clearly the condition of the sports car. 12 November
Benny called Allan and said he would be willing to pay $15,000 for the car. •
Allan said that he would only accept $18,000 and that he would let Benny have until 17 November to agree to his price. 14 November
Benny wrote a cheque of $1,800 as a ‘10% deposit’ and included the cheque in a letter to say that he agreed to the price of $18,000. 15 November
Allan sold the sports car to his brother Alex for $17,000. 16 November
Allan received the letter written by Benny.
Invitation to Treat
In contract law, an invitation to treat is an action by one party which may appear to be a contractual offer but which is actually inviting others to make an offer of their own. He or she can consider the invitation and accept it or may reject it. An invitation to treat may be seen as a request for expressions of interest. The distinction between an offer and an invitation to treat is important because if a legitimate contractual offer is accepted...
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