Assignment 1:

Question 1:

In a letter, dated 1 March and posted the same day Ann wrote to Jack offering to sell him her car for $12,000. She wrote,” I will give you until 7 March to make up your mind”. However, soon after posting the letter Ann changed her mind and on the morning of 2 March posted Jack a second letter advising him that the car was no longer for sale.

Jack received Ann’s first letter at 10.00 am on 3 March. At 2.00 pm on the same day, Jack posted the following reply to Ann:

I like your offer very much but due to my present financial position will you accept payment of $1000 per month over a year?

On the afternoon of 4 March Jack received an unexpected cheque for $16,000 from his uncle, and at 4.00pm he posted a second letter to Ann which said:

‘Forget my last letter; I accept your offer made in your letter dated 1 March and can pay you immediately I receive the car’.

An hour after posting that letter Jack received Ann’s second letter advising that the car was no longer for sale.

On 5 March, Ann received Jack’s second letter.

Ann seeks your advice on whether there is a contract between her and Jack.

In your answer, you are required to refer to relevant legal authority

Question 2:

Batty was driving to work in his car when his car broke down. He telephoned his local garage, Qualal Motors, and told them of his difficulty. They agreed to send out a mechanic, Eddie, to repair the car.

When Eddie checked the car he discovered that it could not be repaired at the roadside but would have to be towed to the garage. Batty agreed to this.

Eddie winched up the car on to the towing vehicle for the purpose of towing it to the garage. However, a worn clip on the towing gear being used by Eddie slipped open causing the car to fall. The car ran backwards over Batty’s foot breaking several of his toes. Also, the car’s suspension was severely damaged in the fall.

Displayed on the back of the towing vehicle was a notice:

“All towing is undertaken at the customer’s risk. Qualal Motors and their employees accept no liability for any damage, injury, or consequential loss, howsoever caused, while a car is being towed.”

Batty wrote to Qualal Motors claiming compensation for the injury to his foot and for the cost of repairing the damage to his car’s suspension. They rejected his claim and referred him to the notice on the towing vehicle and to a similar notice that was displayed in their garage.

Advise Batty of any legal rights he may have against Qualal Motors to obtain compensation for his injury and the damage to his car.

You are required to consider only the legal position at common law.

In your answer, you are required to refer to relevant legal authority.