Case Study

COMMERICAL LAW – CASE STUDIES

Answer ALL questions. When answering these for an assignment, you should consider the following:

•Use Case law to support your answer.

•The answer should not exceed 1600 words.

•References – You are required to consult fully reference a MINIMUM of 5 reference from 3 different sources of information (book from McGraw-Hill Education; website – no wikipedia; journal article from the full-text database and etc)

Assignment Question

Jim owned a Mercedes Benz car which was manufactured in 1999. He wanted sell it so he advertised his car in the Straits Times. The advertisement was published on 15 January 2014 as follows, “A well maintained Mercedes Benz car for an unbelievable price of $30,000. The year of manufacture is 2010 hurry before it’s gone”.

On 16 January 2014 Francis viewed the car and informed Jim that he is very interested in buying the car. He informed Jim that he will buy the car on 20 January 2014 if he has sufficient money.

Fatimah who is an enthusiast of Mercedes Benz cars offered $32,000 and Jim sold it to Fatimah on the 19th January 2014.

On 20th January 2014 Francis approached Jim with the $30,000 but Jim informs him that he has sold the car to Fatimah.

Francis is very angry with Jim and threatens to sue Jim for breach of contract.

a) Advise Jim if there is an enforceable contract and will Francis be successful?

Discuss the issues by examining the relevant elements of contract. (12 marks)

b) After buying the car from Jim, Fatimah discovers that the car was actually manufactured in 1999 and not in 2010 as described in the advertisement. She is furious as she realises that she has paid too much for the car relying on the description.

i) Advise Fatimah if she can take legal proceedings against Jim under the Sale of Goods Act? (5 marks)

ii) If Fatimah is successful in her action against Jim under the Sales of Goods Act explain whether the breach is a condition or warranty and the consequences of the breach. (5 marks)

c) Suppose Fatimah and Jim are friends how will this affect the creation of a contract? (8 marks)

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