TUTORIAL 2 - QUESTIONSThese questions have been taken from Graw, S:
An Introduction to the Law of Contract (6
th Ed.)
Question 1The Queensland Court of Appeal hands down a unanimous decision in a contract law case. Discuss the impact that the decision will have on later decisions by:
- Other Queensland courts
- Courts in other Australian states and territories
- New Zealand courts
Question 2Cas and Don had been negotiating the sale and purchase of Cas’s yacht. On 28 February they both sent letters reading: “I am prepared to go firm at $150,000”. The letters were delivered on March 1. Cas then telephoned Don, saying: “I’ve changed my mind. You can have it for $160,000”. Don replied: “I really think you have to give it to me for $150,000 but I will go to $155,000”. Cas then said: “would you be prepared to defer delivery until after Easter?” Don exploded, saying: “No, I want it for Easter”. At that point Cas capitulated, saying: “Okay, it is yours for $155,000, delivery now”. Still angry, Don demanded sale at $150,000.
With reference to the rules of offer and acceptance discuss if there is a contract between Cas and Don.
Question 3On 4 January, Kera makes Liam an offer by letter. On 9 January, Liam writes accepting the offer. On 10 January Liam sends Kera a fax: “have changed my mind. Ignore letter of 9
th”. Having received the fax, Kera sells the goods to Max on 11 January. On January 12 Liam’s letter arrives. That afternoon Liam telephones Kera to tell her he now wishes to proceed.
Advise Kera if she is bound to sell to Liam.