fundamentals of law
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Assignment Topic Due Date: Friday, noon, of week 8
Semester One 2014
On 1 October, Buyer saw a courier van with a FOR SALE sign that included a telephone number and a price of "$25,000 cash." That night, Buyer called Seller. Buyer explained that he would have to borrow the money but could get it next week. Seller provided his address to Buyer and told Buyer, "If you want the van, mail me a cheque for $5000. Pay the balance by 1 November." Later that day, Buyer mailed Seller a $5000 cheque.
The next night, at Buyer's 18th birthday party, Buyer discussed the deal with Investor. After buying the van, Buyer planned to start a document courier service, and he had spent $1200 on business cards, flyers and a cellular phone. Buyer projected a profit of $50,000 in the first year. Investor was impressed with Buyer's plans and agreed to loan Buyer $20,000 to buy the van.
On 25 October, Buyer called Seller to pick up the van. Seller refused and said someone had offered him $35,000 for the van. Seller had not cashed Buyer's cheque as yet. Seller offered to deposit the cheque and give him the van if Buyer would pay Seller $20,000 now plus $400 a month for 25 months. Buyer laughed and said, "Yeah, right." But without a van, Buyer would not be able to start his courier service.
Investor wants to hire you to give Buyer legal advice. Prepare a memorandum addressing the following matters in detail, and including relevant case law to support your arguments:
1. What are Buyer's potential claims against Seller? What are Seller's potential defences? Who is likely to prevail in the event this case goes to court?
(15 marks)
2. Assume Buyer prevails in his lawsuit against Seller. What damages is Buyer likely to receive from the court?
(15 marks)
(Total marks: 30)
Assignment Topic Due Date: Friday, noon, of week 8
Semester One 2014
On 1 October, Buyer saw a courier van with a FOR SALE sign that included a telephone number and a price of "$25,000 cash." That night, Buyer called Seller. Buyer explained that he would have to borrow the money but could get it next week. Seller provided his address to Buyer and told Buyer, "If you want the van, mail me a cheque for $5000. Pay the balance by 1 November." Later that day, Buyer mailed Seller a $5000 cheque.
The next night, at Buyer's 18th birthday party, Buyer discussed the deal with Investor. After buying the van, Buyer planned to start a document courier service, and he had spent $1200 on business cards, flyers and a cellular phone. Buyer projected a profit of $50,000 in the first year. Investor was impressed with Buyer's plans and agreed to loan Buyer $20,000 to buy the van.
On 25 October, Buyer called Seller to pick up the van. Seller refused and said someone had offered him $35,000 for the van. Seller had not cashed Buyer's cheque as yet. Seller offered to deposit the cheque and give him the van if Buyer would pay Seller $20,000 now plus $400 a month for 25 months. Buyer laughed and said, "Yeah, right." But without a van, Buyer would not be able to start his courier service.
Investor wants to hire you to give Buyer legal advice. Prepare a memorandum addressing the following matters in detail, and including relevant case law to support your arguments:
1. What are Buyer's potential claims against Seller? What are Seller's potential defences? Who is likely to prevail in the event this case goes to court?
(15 marks)
2. Assume Buyer prevails in his lawsuit against Seller. What damages is Buyer likely to receive from the court?
(15 marks)
(Total marks: 30)