QUESTION 1 – 10 MARKSConsider the following situations and indicate whether consideration is present andwhether Jack has an enforceable agreement:a) Jane is going overseas and she offers to give her Lotus Super 7 sports car toJack. The market value for this type of vehicle in good condition is around$ XXXXXXXXXXJack accepts. (2.5 MARKS)b) Jane offers to sell Jack her Lotus Super 7 sports car for $ XXXXXXXXXXThe marketvalue for this type of vehicle in good condition is around $ XXXXXXXXXXJackaccepts. (2.5 MARKS)c) Jane offers to sell Jack her Lotus Super 7 sports car for $2500. The marketvalue for this type of vehicle in good condition is around $ XXXXXXXXXXJackaccepts. (5 MARKS)QUESTION 2 – 10 MARKSA shipbuilder had contracted to build a tanker for North Ocean Tankers. Thecontract was in US dollars and didn’t contain any provisions for currencyfluctuations. Approximately halfway through construction of the ship, the UnitedStates devalued its currency by 10 per cent. As the shipbuilder stood to make a losson the contract, it demanded that an extra US$3 million be paid or it would stopwork. The buyer reluctantly agreed under protest to pay, as he already had a charterfor the tanker and it was essential that it be delivered on time. The buyer didn’tcommence action to recover the excess payment until some nine months afterdelivery. Will the buyer succeed in recovering the excess?
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