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Timmy has been wanting to buy his mother a special present for when she turns 40 this year and had been looking for something special all last year. Unfortunately he didn't have much money except for...

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Timmy has been wanting to buy his mother a special present for when she turns 40 this year and had been looking for something special all last year. Unfortunately he didn't have much money except for about $700 which he has saved by doing odd jobs on weekends and after school.

He decides that if he is to get something special he will need to borrow some money off his Uncle Sanjay. Timmy catches up with Uncle Sanjay at a family gathering at Christmas. Uncle Sanjay is happy to help out and so lends Timmy $3000 on the understanding that Timmy can start paying him back when he starts his apprenticeship this year.

Timmy is still undecided about what to buy but sees an advertisement in theHerald Sunwhere Tiger Bikes, in order to boost sales, is offering to pay $6,000 to the first person in the upcoming year to ride a new brand Tiger lightweight bicycle from Melbourne to Apollo Bay and back to Melbourne.

Timmy decides that if he could get $6000 he could buy his mother a great gift and also throw a big birthday party for his mother and pay off his Uncle Sanjay, so he buys the new Tiger lightweight bicycle for $500 and starts riding to Apollo Bay straight away on 1 January, 2015.

When he gets to Apollo Bay on 3 January 2015, he sees a great Baby Grand Piano in the lounge of the Budget Bed and Breakfast in which he is staying overnight before returning to Melbourne. His mother used to love playing the piano and he asks about the piano with the owner Ethel.

Ethel has arthritis and can't play anymore and offers to sell the piano to Timmy for $4000. Timmy thinks about it and figures out that he has $2000 and if he wins the $6000 from Tiger bikes he would still have enough to pay off the piano and throw a party so he says to Ethel. "It's a great piano and I'd like to buy it. I can afford it if I can pay for it in two instalments." Ethel smiles. Nothing further is said.

Two days later, while on his way back from Apollo Bay, Timmy stops briefly at the Geelong RSL club for a meal, a drink and a rest. While at the club, he reads that day’s issue ofthe Herald Sunand sees a notice that Tiger Bikes had cancelled its offer of the $6,000 prize.

Timmy decides then to send off a letter to Ethel dated 5 January 2015 saying he accepts her offer to sell the piano and continues riding into Melbourne. Ethel sells the piano to her friend Myrtle May on 6 January 2015 for $5000 and receives Timmy's letter on 7 January 2015.

Timmy continues with his ride and when he returns to Melbourne, he finds out he was the first and only person who attempted and finished the bicycle ride.

Timmy decides to make the arrangements for his mother's birthday party andcontacts function caterers and decides on the menu and music and other party needs. Timmy pays a deposit and spends the rest of Uncle Sanjay's money on the party.

Timmy decides to go to University instead of doing an apprenticeship and at present can't pay off Uncle Sanjay.

All students:Advise Timmy on whether he has any claims for breach of contract against Ethel or Tiger Bikes.

Postgrad students additional question:Advise Uncle Sanjay on whether he has any claim against Timmy.

Give detailed reasons for your answers and cite relevant case law.

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Referencing sources of information

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6.When subsequently referring to the case, it is acceptable to use a common name for the case, such as “Mabo’scase” or “Mabo”.

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Citation of statutes

8.When citing a statute, the name of the statute should be italicised and the jurisdiction should appear in brackets after the name e.g.Commonwealth of Australia Constitution Act 1900(UK).

9.When a particular section in the statute is being relied on, then the section should be specified e.g. section 1. It is acceptable to use the abbreviation “s” for “section” or “ss” where more than one section is being referred to e.g. s 1 or ss 5, 6 and 7. However, when a sentence begins with a reference to a section, the word should always be written in full e.g. “Section 1 of theCommonwealth of Australia Constitution Act 1900(UK) provides that ...”

Secondary sources

10.When initially referring to secondary sources such as books, the author’s name and initials, full title of the book, edition (if relevant), publication date and page number should be given e.g. Crosling G.M. and Murphy H.MHow to Study Business Law- Reading, Writing and Exams, 3rded, 2000, p 122.

Bibliography

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Guidance from textbooks

12.Use your prescribed textbook and recommended texts as a guide to the way in which cases, statutes and secondary sources are cited and the manner in which legal arguments are structured.

Answered Same Day Apr 30, 2020

Solution

Abr Writing answered on May 01 2020
143 Votes
Case
University
Case
Australian Law
Student
5/1/2018
Professo
Introduction
Timmy wants to cele
ate his mother’s 40th birthday and looking for something special for her. He has only $ 700, which he had saved by doing odd jobs after school or on weekends. He bo
ows $ 3000 from his Uncle Sanjay at a family gathering at Christmas. Uncle Sanjay loved to help him and lends $ 3000 to Timmy on understanding that Timmy can start paying to Sanjay, once he starts his apprenticeship. He is not sure about what to buy and sees an advertisement in the Herald Sun that Tiger Bikes are offering to pay $ 6000 to the person, who will ride the Tiger Lightweight bicycle from Melbourne to Apollo Bay and back to Melbourne. He buys a bicycle for $ 500 and starts his journey, planning to throw a big party and buy a special gift for his mom and pay off Uncle Sanjay. He started his journey on 1st January 2015, and reached Apollo Bay on 3rd January.
There he saw a Piano and showed his concern to the owner (Ethel) to buy it. Ethel being an arthritis patient cannot play anymore and offers to sell the piano at $4000 to Timmy. Timmy was left with $2000 and thinks that when he will win the prize money from Tiger Bikes will pay for the Piano and throws the party as well. He says to Ethel that he can pay in two instalments for the piano; Ethel did not say anything and smiled. Two days later, on the way back from Apollo Bay, he read the Herald Sun issue on 5th January that they had cancelled its offer of $ 6000 prize money.
    Timmy sent a letter to Ethel accepting the offer for Piano and Ethel receives the letter on 7th January. On 6th January, Ethel sold her Piano to her friend Myrtle for $ 5000. Timmy continues his ride and returns to Melbourne and came to know that he was first and only person to finish the bicycle ride. He a
anged birthday party for his mother and spends Uncle Sanjay’s rest money on party. From there he planned to go back to the university instead of doing apprenticeship and now he is unable to pay off Uncle Sanjay.
Case
An Invitation conveyed by one party to another party abiding in a legally restricted contract with some terms and conditions that are predefined is Offer(Offer v Invitation to Treat). With view to making an offer, Invitation to Treat is a negotiation to go into transactions. These two terms are different. In case of Ethel vs Timmy, it was an Offer [Cargill v Ca
olic Smoke Ball Co [1893] and in case of Tiger Bikes Vs Timmy it was an Invitation to Treat [Harvela Investments Ltd v. Royal Trust of Canada (CI) Ltd [1986] .
In case where Timmy accepts an offer of Ethel to buy the piano for $ 4000 prompts key factor that there was that every one of the terms of the offer were clear earlier at the time of accepting the offer of piano, so no further dialogs were required, and by conduct, that is by accepting to give piano to Timmy is an occu
ence of an acknowledgement.
What is an Offer?
Offer must incorporate the basic terms of the concu
ence with the aim that no further...
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