CONTRACT TUTORIAL QUESTION

1. (a) On the 1st of January, David by three separate letters which he posted to Ann, Bev
and Cathy informed them that he was selling his 2004 BMW car for $1M. He
stated in the letter that the offer would remain open until the 8th of January. All
three persons received the letters in the post on the following day.

Ann on receiving the letter thought it was a good price. She immediately replied
to David stating that she was interested in buying the car and that she wanted a
BMW expert to give her his opinion on the car. On the 9th January, she posted a
cheque for $1,000,000.00 to David.

Immediately Bev received the letter, she telephoned David but he was not around
to take the call, she left a message on his answering machine stating that in her
opinion the car was overpriced and that she would pay $800,000 for it. David‟s
answering machine was faulty so he did not retrieve the message. Bev waited for
David‟s response and not wanting to lose the car left a second message on
David‟s answering machine that she had reconsidered her position and that she
would buy the car for $1M. David retrieved both messages left by Bev on the 3rd
of January.

Cathy on receiving the letter responded by posting a letter to David on the 2nd of
January stating that she was willing to buy the car at the stated price of $1M and
thanking him for the offer. The letter posted by Cathy was delivered to David on
the 7th of January. On the 4th of January, Cathy sent a fax to David asking him to
ignore the letter she had posted on the 2nd. This fax was never received by David.

Meanwhile on the 5th of January, David advertised the car for sale in the
newspaper having been advised by a friend that he could get a much higher price
for the car.

David was visited by a couple who responded to the Ad. The couple introduced
themselves as Mr. And Mrs. Chin, owners of a popular supermarket chain in
Kingston. David thought that Mrs. Chin looked very young but he did not want to
embarrass himself so he did not ask the couple to prove their identity. They gave
David a cheque for $1.3M and drove away the car.

On lodging the cheque, David discovered that there was no money in the account.
H has also discovered that the couple he sold the car to was not Mr. and Mrs.
Chin but Tricksters. The lady who is a 17 year old high school „drop out‟ and her
25 year old boyfriend have been defrauding businesses in Kingston.
 The car has been resold to a Utech lecturer for $500,000 and the boyfriend has
absconded with the money leaving the girl behind. David has located the Utech
lecturer and the girl. Ann, Bev and Cathy, who has changed her mind again and
now wants the car. They are all claiming ownership of the car and they are
insisting that David should recover the car from the Utech lecturer.

Advise David on all issues arising.

(b) David is quite perturbed and checks into the Sandshore Hotel to “breeze out”. He
signed a contract which he never read, with one of the terms being that the hotel
will not be responsible for any car that has been parked in the hotel‟s parking lot
which is damaged or stolen.

Upon arriving in the room, David sees a sign on the bedroom wall informing him
that the hotel is not liable for any items missing or stolen from the room.

David left his Movado Watch in the room and went to dinner. Upon his return to
the room his watch is gone. David has informed the manager of the hotel that he
will be suing them for the cost of the watch and decides to leave to see his
Attorney-at-Law. Upon reaching the car park, he sees the bumper of his vehicle
on the ground and substantial damage to his bumper. David who is by now in a
rage, returns to the hotel and informs them of the damage. The hotel is stating that
they are not liable for either the damaged car or the stolen watch.

Advise Sandshore Hotel.