n order to finance his university studies John ran a business buying and selling organic health products via mail order. However, he now has to concentrate on his final examinations so he decides to wind up his business.
John decides to sell his van and his Rolex watch.
John puts an advertisement in the back window of his van which states: This van is for sale. 6 years old, low mileage. 5,000: Telephone: John 020773 679810. On 4 March, Victoria telephones John and asks him for his lowest price. John informs Victoria he will accept 4,000 for the van. Victoria asks John if he will hold his offer open for a few days. John agrees to hold the offer open for her until 7 March.
On 4 March, Brian comes to inspect the van. John informs Brian that the van was once owned by the Spice Girls and was used to carry their music equipment when they were on tour. Brian is a great fan of the Spice Girls, and he readily agrees with John to buy the van for 5,000. They draw up a written contract, in which no mention is made of who once owned the van. It is agreed that Brian will collect the van and hand over the purchase price on 6 March.
On 5 March, Victoria, having been unable to get through on the telephone, sends a letter to John, letting him know that she accepts his offer to sell the van to her for 4,000. On 6 March, John sends a text to Victoria to say that he has sold the van.
On 7 March, John e-mails Charlie, a friend, asking if he wants to buy his Rolex for 1,000. Charlie e-mails by return, asking John if he will accept payment by 3 instalments. He gets a reply from John saying No. Later that day, John gets a message on his mobile phone. The message is from Charlie accepting the offer of the Rolex for 1,000. John has now decided that he cannot part with the watch which once belonged to his great-grandfather and sends a text to Charlie stating no sale.
On 15 March, John receives the following mail:
A letter from Brian informing him that he intends to take action for misrepresentation as he has discovered that the van was never owned by the Spice Girls.
A letter from Victoria informing him that she intends to sue for breach of contract.
A letter from Charlie informing him that he intends to sue for breach of contract.
John knows that you have studied law and asks you to advise him. Answer the following questions discussing all relevant issues and ensuring you support your answers with appropriate legal authority.
a)Apply the elements of contract in given business scenarios
b)Apply the law on terms in different contracts
c)Evaluate the effect of different terms in given contracts
d)Use a critical reflection to evaluate own work and justify valid conclusions.