1. Chan offers to sell his car to David for $20,000. David says, "I am very much interested in buying your car but give me some time to think about it. I will get back to you as soon as possible". After a long and hard thinking David decides to buy Chan's car and informs him, by e-mail that he accepts Chan's offer. David asks Chan to prepare papers regarding the transfer of the car to his name. Chan replies "since I did 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 to be 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 delivered in Melbourne store. Delivery has to be made free to the store in three lots of 5 tons approximately 10 days apart". TT Co refuses to deliver the pulp as promised and Cammy Pty 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) can terminate the contract if the purchaser does not complete the purchase by the due date'. Lee has difficulty in raising the necessary finance by the due date. The day before the due date, Lee speaks to Harry's solicitor and tells him his inability to raise the finance by the due date.

Lee, however, advises the solicitor that the finance can be available within seven days after the due date and he can complete the purchase with Harry then. The solicitor says, "I think 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. He instructs 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 representation made by Harry's solicitor.

Can Lee sue Harry for breach of contract? Does the representation made by Harry's solicitor amount to promissory estoppel?

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

(e) Read further instructions set on a separate document accompanying the assignment.