SCHOOL OF BUSINESS ADMINISTRATION
BUSINESS LAW
LAW OF CONTRACT TUTORIAL SHEET
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