Case study on Contract Law

law

Description

Referencing style: APA, minimum 10 case laws and 10 references

Alan is a student in a higher education school. he just took "commercial law" in june 2015 and received a "credit" grade for the module.

Whilst tidying up his bookshelves, he decided to sell his textbook "introduction to business law in Singapore", which was a compulsory textbook used in "commercial law". as he knew of various friends in his school, he posted on his facebook page on 1 november 2015, as follows:- 

"To all my friends who are students enrolling or are enrolled in the school that i go to. i am selling my textbook, together with all the notes i took in class. the notes are written in an exercise book and they are very useful as i obtained a high distinction for this unit! the selling price is $200. if keen, please pay me by 5 november 2015."

bernard is a friend on alan's facebook account. he will be taking the "commercial law" module on 23 november 2015 and is very keen to purchase the material from alan. he immediately posted on alan's facebook wall on 2 november 2015.:- "i am keen to buy. but can you sell at $150? 

Charleen is alan's younger sister who is taking her GCE O Levels this year. she saw alan's post and was very keen to read up on business law. On the morning of 2 november 2015, while alan was still in bed, she told him that she will buy alan's textbook for $200. alan merely smiled. he thought that his sister must be mad to read up on commercial law at her age. when Charleen asked if she could pass the money to him on 6 November 2015, alan was thinking about his favorite football team's performance at last weekend's match and nodded. he then went back to sleep. 

Damien is Bernard's friend and is a student at the same school. He is not on alan's facebook account but knows who he is. he heard about alan's offer from bernard and is keen to buy the material as he wants to do well for the module. after getting alan's handphone number from bernard, he sent alan an SMS:- "alan this is Damien. i am keen to buy your commercial law textbook. can i pass the money to you in school on 4 november 2016?"

On 3 november 2015, alan replied to bernard's post on his facebook wall:- "sorry. i am selling at $200. in fact, there is already an offer" 

On the night of 3 november 2015, after much consideration, bernard decided to buy alan's book. however, he would be going overseas for 3 days and could not meet up with alan. as such, he put $200 cash into an envelope and posted it to alan on the morning of 4 november 2015/ he then informed alan to look out for the cash. alan received the cash at 5 pm on 5 november 2015 when he opened the letterbox.

On the evening of 4 november 2015, Damien saw alan in school. he ran up to him and passed him $200 cash and said that it is his payment for the textbook. alan kept the money and said he will pass everything to Damien on 7 november 2015

On 6 november 2015, after receiving her pocket money, Charleen left $200 on alan's table.

On 7 november 2015, alan passed his original textbook only to bernard. he commented that his notes are written in the textbook. on the same day, he bought the same textbook from a bookshop and passed the textbook together with his hand-written notes to Damien.

On 23 november 2015, both bernard and Damien realized that the textbook "Introduction to business law" was issued free of charge by the school. they are infuriated.


ANSWERS:

Discuss, incorporating your understanding of contract law with the following:-

The contract is a legally enforceable agreement 
To be valid there must be an offer, acceptance, consideration, and intention to create relations. also, look at capacity of contracting parties
Discussion on whether it is an offer to world at large or offer to a targetted group of people 
Requirements for valid acceptance
Discussion on concept of meeting of minds 
Discussion on concept of consideration and intention to create relations and rebutting presumption
Conclusion based on application of facts below 
Effect of counteroffer is to extinguish original offer
Discussion on modes of acceptance
Effect of postal acceptance rule, and it's applicability here 
Analysis on whether there is case misrepresentation 
Charleen
Whether she may enter into a contract in view of her age 
Discussion on intention to create legal relations. Whether presumption rebutted 
Effect of nod and if it is valid acceptance 
Analysis on consensus ad idem 
Whether offer was made to him 
Whether Damien was making an offer instead
Discussion on effect of Don running up to ANthony to pass the money 
Whether Anthony has accepted the offer 
Analysis on whether there is case of misrepresentation
Litigation - pro and cons 
Mediation - pro and cons 
Arbitration - pro and cons

Discussion on the definition of offer

Bernard - application to the fact 

Damien

Dispute resolution process


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