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Assignment Instructions to Students This assignment carries 20% of the marks for this subject. The word limit is1,500 wordsand the front cover of your assignment should note the total word count...

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Instructions to Students

This assignment carries 20% of the marks for this subject.

The word limit is1,500 wordsand the front cover of your assignment should note the total word count used. Words in excess of the permitted 1,500will not be read or marked.

This assignment is intended to provide you with the opportunity to consider a range of legal issues that can arise in contract in the course of carrying on a business and to develop your ability to research and analyse problems from the perspective of those legal issues. You are expected to think through the issues thoroughly, considerbothparties’ rights and liabilities and provide a reasoned solution to the problems posed by the facts. In particular, you will need to ensure that you cover each of the specific matters that are set out in the question.

Students may work collaboratively in considering the problems (and are strongly encouraged to do so) butindividual essaysare to be submitted by each student – and they are to beyour own work

The Question

Peter wants to sell one of his cars that has a diesel motor to his nephew Brett. Brett is eager to purchase the car but Brett does not realise that one of his uncle’s cars is diesel.

Peter writes a letter to Brett as follows:

“Dear Brett,

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 reckon it is worth about $2,000). If I don’t hear from you by this Friday I take it that you are happy to buy it for $500. I will then drop off the car to your place on the weekend.”



Brett does not see the letter and there is no further communication between Peter and Brett.

On Saturday, Peter delivers the diesel motor car to Brett’s home. Brett arrives home to discover the letter and the car from his uncle. Brett realises the car is diesel and he does not really want the car. However, Brett decides the car is still useful and starts driving the car to and from university. After three weeks driving the car Brett decides that he will return the car. He has not yet paid Peter any money. Peter thinks Brett is ungrateful and demands full payment.

  1. Brett wants to return the motor car to his uncle. Peter is angry with his nephew and he demands payment for the car. Peter says he will lodge a small claim and sue Brett for the money. Brett states“we are family and you can’t sue me.”

Explain whether the uncle/nephew relationship has any effect on whether or not there is a binding agreement.6 marks)

  1. On the same telephone call Brett also says to Peter that “There is no contract because I never agreed to anything. Peter says “It’s a bit late to return the car now. You’ve been driving it around”.

Has Brett accepted an offer from Peter to purchase the motor car?(4 marks)

  1. On the same telephone call Peter says that “I was being nice to you and offering you the car at ‘mates rates’.

Could $500 be valid ‘consideration’ for a contract to sell the diesel motor car? Explain why/why not?(4 marks)

  1. Brett tells Peter on the same telephone call “Even if you can convince the judge that there was an agreement, I can get out of it because I didn’t know you had a diesel car and I never wanted a diesel car. I thought all your cars were petrol”. Is it correct that Brett can avoid contractual obligations on the basis of his mistaken belief? Why/why not?(6 marks)

Answered Same Day May 05, 2020


Abr Writing answered on May 07 2020
157 Votes
Contract Law 4
[Type the document title]        [Type the document subtitle]        [Pick the date]            
a. The contract can be considered as a legal document, which binds two parties according to the terms of contract. The contract contains terms, which can be enforced by the law. In the contract, an agreement is made, when two parties agree to the terms of the contract. In a contract, there are two parties, offeree and the acceptor. When the offeree offers the terms and the acceptor, agree to these terms, a contract has been established (McKendrick, 2017). In the present case, no contract has been established between Peter and Brett in the selling of the car. The letter can be considered as an agreement between the uncle and nephew for selling the car. Peter mentions that he will sell the letter for $500; however, Brett did not agree to the terms. He stated in the letter that since Bret is not accepting the car as a charity or gift, he is selling the car. Therefore, Peter sends both the car and letter at the home of Brent. After this, there is no communication between both the parties for a while. Here, it can be stated that the communication between both the parties cannot be considered as an agreement. Brent did not officially accept the terms of agreement.
Although Brett did not officially accepted the terms of agreement; however, he continued using the car for a period of three weeks. Although, he clearly showed the disliking for the car at first instance, he didn’t return the car, which confused Peter. If Brett had returned the car as soon as he has received it, it would have created clarity for the Peter too. It is a legal contract; therefore, there is not a significance of family relationship and the unofficial communication between the family members has no significance. In the cu
ent scenario, there is no presence of legal contract; therefore, it is advised that the family solve their disputed within themselves. It can be stated that when disputes arise in the family, the court can solve it on the basis of intentions of both the parties. It can be perceived that the family relations do not have any impact on these cases. Peter can accuse him, as he sent a letter with the car.
. The present is a complex situation, as no official contract was made between Peter and Brett. However, there has been a misunderstanding between Peter and Brett as Brett did not return the car for three weeks. Brett also posited that he neither accepted the contractual terms ve
ally or in any written form. Therefore, Brett said that he was not in any fault as he did not agree to any terms....

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