Business Law Tutorials

Topics: Contract, Standard form contract, Advertising Pages: 12 (3643 words) Published: February 12, 2009



1.On the first of January, David telephoned Donavan and offered to sell his car to him for $100.00. The offer was to remain until the 8th of January. That same evening, Donavan saw David in the bar and gave him a hundred dollar bill. He said to David:

“I really appreciate you keeping the offer open until I can raise the money. Here’s a beer money for your trouble”.

David said nothing and put the money in his pocket.
On the 3rd of January, David sold the car to Shawn for $125,000.00. Two days later, Donavan posted a letter to David accepting the offer. David immediately telephoned Donavan to say he had already sold the car to Shawn.

Advise Donavan as to his legal position.

2.Alex who is migrating from the island wrote two separate letters offering to sell his furniture. One letter offered to sell his home furniture to Betty for $10,000 and the other letter offered to sell the same furniture to Cecil also for $10,000. The letters were issued on Friday at 9:00am and stated that the offer will be open until Monday at 5pm.

On Monday morning, Betty telephoned Alex asking if she could pay $8,000 and he rejected this. Betty later wrote a letter stating she accepts the $10,000 price and personally gave this to Alex at 1pm on Monday.

Cecil on the other hand, sent a fax message to Alex on Monday morning at 9:00am asking if he wants the $10,000 to be paid in cheque or cash. Alex received the fax message but never replied. At 7pm the same day Alex was personally handed a letter of acceptance by Cecil.

Alex refused to sell the furniture to Betty and Cecil and has sold them to Debbie for $15,000.

Advise Betty and Cecil whether they can sue Alex for breach of contract.

3. Matthew made an offer to Mark to sell him a computer. This offer was made by telephone on the 1st of January. He told Mark to fax his acceptance on the 2nd of January if he was interested. At 8:00 am on the 2nd of January, Mark faxed a letter asking Matthew if a printer was included in the sale. Matthew immediately left to the country to acquire a printer without responding to the fax. He did not return until the 5th of January. Meanwhile, on the 2nd of January at about 2pm, Mark faxed an acceptance letter. When Matthew returned on the 5th he saw the fax. He telephoned Mark and informed him that he had sold the computer to his friend in the country on the 3rd because he thought Mark was no longer interested.

Advise Matthew and Mark.

4. Heartless Enterprises Co. sent a letter to Septimus offering him $200,000 to pay for his son’s Utech fees. The letter stated that Septimus should: “…..sign in the space provided to indicate your acceptance and return by post on or before November 5”.

Septimus looked at his calendar and realized that it was November 5th. He and his son sprinted towards the Post Office because it was closing shortly. The exertion was too much for old Septimus and he suffered a heart attack. He said to his son: “ it’s too late for me now….mail this letter before the post office closes” His son fulfilled Septimus’ dying wish and as he was leaving the post office he received a call that his father just died. Heartless Enterprises refuses to pay the scholarship.

Advise Septimus’ son.

5. Miss Black a 17 year old under-graduate of UTECH who lives in Old Harbour entered into an agreement with Pacific Motors on the sale of a Daewoo Racer car at $200,000. “She agreed to pay for the car in four installments, and after the first installment, she was allowed to drive away the car.

Miss Black has refused to pay the subsequent installments after being informed by a friend that the car is actually worth...
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