Q1-Joe and George are good friends.Joe is
a Builder and George is in Underwear.
George wants a house built so after a few drinks Joe says, "You get
the materials and I will build it for you".George accepts Joe's offer, they shake hands
and seal the offer with another round of drinks.When George buys the materials he cannot get
Joe to build because Joe is too busy on another contract. What is the legal
position?
Q2-
George
has plans prepared for a house.Joe
offers to build the house for $50,000.
George agrees to have Joe build, it if he can do it for $45,000.With no further communication Joe builds, and
invoices the full $50,000 saying he had never agreed to any subsequent figure.
What is the legal position ?
Q3-
Party
A advertises a car for sale for $10,000.
Party B has a look at the car and says, "Looks OK, but your asking
price is too high for me, I'm offering you $8,000."Party A says, "I'll be in touch if I
don't get a better price."The
next day Party A rings Party B and says, "Your price was the best, I'll
take it".Party B says,
"Sorry, I bought another car this morning." What is the legal
position?
Q4-
XYZ
Co, who manufactures industrial pump sets, wrote to Mogul Ltd, an oil company,
offering to constructan item of plant
for $100,000.The offer was made on a
form containing XYZ's standard terms of business.One of the terms contained in the document
was that the initially agreed contract price might be varied according to the
cost and availability of materials.
Mogul replied in a letter dated April 29
containing their standard terms of business, stating that they wished to order
the plant.These terms did not include a
price variation clause but contained a statement that the order was not valid
unless confirmed by return of post.XYZ
duly confirmed by a letter dated May 1.
This letter was delayed in the post as it bore the wrong address, and
did not arrive until May 14.Meanwhile
on May 12 Mogul posted a letter to XYZ canceling the order.That letter arrived on May 13. What is the
legal position? [2]
Further to question Q4.XYZ ignored the
letter of May 12 and pressed on with the construction of the plant.It was completed at a price of $125,000.Mogul refused to take delivery. What is the
legal position? [2]