Students should read the instructions accompanying this assignment before attemptingto solve the following problems.1. Chan offers to sell his car to David for $20,000. David says, “I am very muchinterested in buying your car but give me some time to think about it. I will get backto you as soon as possible”. After a long and hard thinking David decides to buyChan’s car and informs him, by e-mail that he accepts Chan’s offer. David asks Chanto prepare papers regarding the transfer of the car to his name. Chan replies “since Idid not hear from you. I sold my car to Noddy. I am sorry.”Has a legally binding contract been formed between Chan and David?2. Tina Turnaround Co (TT) offers to supply the following product to Cammy Pty Ltd:“15 tons of raspberry pulp made from whole fruit and first class quality, for sale at$5,000.00 per ton net. Fruit pulp to be delivered to Cammy’s store in Melbourne. Price tobe paid in cash in 7 days”. Cammy Pty Ltd accepts TT’s offer as follows:“15 tons raspberry pulp made from the finest fruit. Price $5,000.00 net per ton deliveredin Melbourne store. Delivery has to be made free to the store in three lots of 5 tonsapproximately 10 days apart”. TT Co refuses to deliver the pulp as promised and CammyPty Ltd sues for damages.Will Cammy Pty Ltd succeed in their action against TT Co for breach of contract?3. Lee promises to buy land from Harry. The contract provides: ‘the vendor (seller) canterminate the contract if the purchaser does not complete the purchase by the duedate’. Lee has difficulty in raising the necessary finance by the due date. The daybefore the due date, Lee speaks to Harry’s solicitor and tells him his inability to raisethe finance by the due date.Lee, however, advises the solicitor that the finance can be available within seven daysafter the due date and he can complete the purchase with Harry then. The solicitor says, “Ithink that would be all right but I will have to get instructions from the vendor”.Harry terminates the sale contract for non-payment three days after the due date. Heinstructs his solicitor to write to Lee about the termination of the contract. Lee is furious.He argues that Harry has no right to terminate the contract because of the representationmade by Harry’s solicitor.Can Lee sue Harry for breach of contract? Does the representation made by Harry’ssolicitor amount to promissory estoppel?(6 +6+8=20 marks)General instructions:(a) Students should use a problem solving format to answer the questions in the assignment.(b) The answer should contain only COMMON LAW principles.(c) Maximum word length of this assignment is approximately 1, 500 words.(d) The total marks for the assignment are twenty (20 marks)(e) Read further instructions set on a separate document accompanying the assignment.
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