Contract Tutorial Questions 1. On Tuesday, September 10, John delivered a written offer to sell a house to Mary. The offer stated that “This offer is to be left over until Thursday, 10 o’clock, September 12. ” On Wednesday, John sold the house to Jill. Lance found out about the sale to Jill and told Mary. At 8 a. m. Thursday, Lance acting as the agent of Mary, handed John a letter of acceptance. John had also posted an offer to sell his car to Ken . On the 1st September, John posted a revocation of his offer. The offer from John was received by Ken on the 4th September and a letter of acceptance was sent the same day.
On the 10th September, John’s letter of revocation reached Ken. Both Mary and Ken are contemplating suing John and John has come to you for advice. Advise John. 2. Mark sent out two offers by letter. One to sell his boat and the other a car to Kate and Ben respectively. The cost of the boat was $3M and the car was $2. 5M. Kate called Mark and told him that the boat was overpriced and she would pay him $2. 8M for same. Mark refused her offer. On ending his call, Jake who was in the room with him offered to pay him $3. 5M but asked him to give him until Next Fri.
Mark does not answer. Kate calls him two days later to inform Mark that she will pay the $3M. Mark says yes and sells the boat to her. The following Friday, Jake comes with his money for the boat. Meanwhile, Ben thinking the car is under priced, immediately upon receiving the letter faxed his acceptance to Mark and in the letter told him that he would pick up the car next Friday. Mark sold the car on Tuesday to Paula. On Friday Ben arrived with his money and a second driver to receive the car to be told by Mark that the car was sold since he did not hear from him.
Ben then informs him that he sent a fax. Mark’s machine is not working. Ben tells him that he will sue him as he accepted his offer. Advise Mark. 3. Michelle has a computer for sale and has advertised same. Gretel , who is 16 years old responded to the advertisement and Michelle’s brother Gary told her that he would purchase same. Kim, Michelle’s best friend has advised her not to sell to her brother. Gretel called and left a message on Michelle’s computer stating that she wants to know if a printer also comes with the computer.
Michelle has decided to go ahead and sell to her brother. He want to pay her on a monthly basis for the computer. Advise Michelle if she should or should not proceed with the sale to Gary or Gretel. 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. Peter advertised his bike for sale in the newspaper. John comes in and offers to buy it for an agreed price.
John asks Peter if he can pay by cheque and Peter refuses. John pulls out an identification card showing the name of Mark Richards a well known collector of fine bikes. Peter smiles, shakes John’s hand and says, “so pleased to meet you Mr. Richards”. He then decides to accept the cheque. The cheque is dishonoured. Peter wants to claim his bike but does not know where to find the person to whom he sold it because he has discovered that John was an imposter. He does not report the matter to the police, nor to the motor vehicle registry, as he is mbarrassed that he has been duped. The real Mark Richards has never heard of John but was happy to recover his identification card from Peter. One week later, Arlene comes to Peter offering to sell him a bike. When Peter checks the serial number and discovers that it is the bike that he sold to the impostor. Peter would like to claim the bike from Arlene. Advise Peter. 6. Patrick advertised a Christmas sale in a local newspaper as follows:” Grand Xmas sale, appliances at give away price. First 10 customers will get free electronic ovens”.
The day the advertisement was published, Mary responded to it by faxing a letter of acceptance and Jane also visited the store and bought a deep freezer, She was the fifth customer that morning. Meanwhile, Patrick discovered that he was unable to obtain the electric ovens at a cheap price due to a fire accident at his supplier’s warehouse. Patrick therefore placed another advertisement the next day canceling the free gift and apologizing for inconveniences. Mary and Jane are insisting that they are entitled to the free oven. Advise Mary and Jane. 7.
On the 10th of July 1998 Billy Clyde borrowed $20,000. 00 from Paul Reeves. It was agreed that, the money should be repaid on or before July 31, 1998. On the 20th of July 1998, Billy Clyde went to Paul Reeves’ home, paid hime$15,000. 00 and said to him, “here is some of the money, I will pay you the remainder tomorrow. ” Paul Reeves, elated that Billy Clyde paid him $15,000. 00 so quickly, said to him, “Boy don’t worry with the rest. ” On the 1st of August of the same year Billy Clyde bought a new motorcycle with the $5,000 he had saved to pay Paul Reeves. When Paul
Reeves saw Billy Clyde riding the motorcycle, he asked him how he got it. Billy Clyde replied, “with the money I was saving for you. ” Paul Reeves, who was upset by Billy Clyde’s answer demanded payment of the $5,000. 00. Paul Reeves has come to you for advice. Advise him. 8. Duke and Duchess went on a weekend trip to Pleasure Hotel, Mobay. At the reception desk, they signed a contract form which they never read and paid for the weekend. One of the terms of the contract was that the cars of customers were parked at owners risk and that the hotel will not be responsible for looking after the cars.
On getting to their room, they found a notice pasted on the wall stating that the hotel will not be responsible for any missing or stolen items from the rooms. They read the notice but never took it seriously. On the last night of their stay, Duchess’ diamond ring was stolen from her suitcase in the room and Duke’s car was stolen from the hotel’s parking lot. Both Duke and Duchess intend to bring an action against Pleasure Hotel for the cost of the ring and card. Advise Duke and Duchess.