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Contract Law

By Xmitratna1 Sep 21, 2014 302 Words

Question 1

“Australia’s legal system is based on the English legal system.” To what extent is this statement correct? Discuss. [10 marks] Word limit = 750

Question 2

Discuss the importance of the case of Central London Property Trust Ltd v High Trees House Ltd [1947] KB 130 [20 marks] Word limit = 1000

Question 3

Simon owns two motor cars. Both cars are the same make and model. Both cars are black. However one of the cars has had its motor replaced with a diesel motor rather than a petrol motor.

Simon wants to sell the car with the diesel motor to his nephew Ben. Ben is eager to purchase the car but he does not realise that one of his uncle’s cars is diesel.

Simon writes a letter to Ben as follows:

Dear Ben,

I know that you are interested in buying one of my cars. I would like to give it to you but I know that you won’t accept charity. Therefore I will offer it to you for $500 (I think it is worth about $2,000). If I don’t hear from you by this Friday I take that you are happy to buy it for $500. I will then drop off the car to your place on the weekend.


Ben does not see the letter and there is not further communication between Simon and Ben.

On Saturday Simon delivers the diesel motor car to Ben’s home. Ben arrives home to discover the letter and the car from his uncle. Ben realises the car is diesel and he does not want to accept the car. Simon thinks Ben is ungrateful and demands payment. Ben seeks your advice.

Advise Ben as to whether he must pay $500 to Simon and keep the motor vehicle. [20 marks] Word limit = 1000

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