Unit 45

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M1-analyse the impact of the requirements for a valid contract in a given situation

In the Westshire Times on 2 September there was an advertisement to sell a 198 Porsche 911 for £21 000. The advertiser was Jamal, giving a contact address.

On 7 September Bob wrote to Jamal stating that he was interested in buying the car for £20 000.

On 9 September Jamal wrote again to Bob stating that he could not sell the car for less than £20 500.

On 10 September Jamal wrote again to Bob stating that he would now sell the car for £20 000 and asking Bob to bring the money and collect the car.

On 12 September, the letters sent on 9 and 10 September arrived together at Bob’s house.

Bob now refuses to collect and pay for the car.

a) Does Bob have to pay for the car or risk legal action for being in breach of contract if he continues to refuse to pay?

b) How might your answer be different if all communication was by email to an internet advertisement?

c) Provide an analysis of the impact of the requirements for a valid contract in the situation above.

Jamal advertised on the 2nd September to sell a 1980 Porsche 911 for £21,000. On 7th September Bob wrote to Jamal stating that he was interested in buying the car for £20,000 rather than £21,000. Jamal replies to his letter on the 9th September stating that he could not sell the car for less than £20,500. On the 10th September Jamal wrote to Bob again stating he would now sell the car for £20,000 and asked Bob to bring the money and collect the car

To begin with this offer is an invitation to treat as it’s advertised in a newspaper and it’s open to everyone to make an offer. As Bob has refused to pay for the car he does not have to pay or risk any legal actions for being in breach of contract if he refuses to pay. Bob does not have to pay for the car as a contract has never taken place and none of the three requirements took place.Jamal rejected Bob`s first offer.

Offer and acceptance...
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