Principles Of Business Law

DIPLOMA IN BUSINESS ADMINISTRATION

PRINCIPLES OF BUSINESS LAW (BA333)

ASSIGNMENT

TERM ONE 2006

Instruction:

• Answer ALL questions.

• Marks will be awarded for good presentation and thoroughness in your approach.

• NO marks will be awarded for the entire assignment if any part of it is found to be copied directly from printed materials or from another student.

• Complete this cover sheet and attach it to your assignment.

Student declaration:

I declare that:

 I understand what is meant by plagiarism.

 The implications of plagiarism have been explained to me by my institution.

 This assignment is all my own work and I have acknowledged any use of the published or unpublished works of other people.

Student's signature: JhenNee Date: 02/03/2006

Total number of pages including this cover page 23 pages

Submission Date 02/03/2006 Due Date 02/03/2006

Student's ID 0204-0104-L003 Class Code DBA05F104

Student's Full Name GOH JHEN NEE

Lecturer's Name MR. BRIAN

OFFICIAL USE ONLY

MARKER’S COMMENTS

Marker's Name Marks Awarded /100

ASSIGNMENT

PRINCIPLES OF BUSINESS LAW

BA 333

QUESTION 1

Allan put an advertisement in the local newspaper on 11 November to sell his sports car for $20,000. The advertisement explained very clearly the condition of the sports car.

On 12 November Benny called Allan and said he would be willing to pay $15,000 for

the car. Allan said that he would only accept $18,000, and that he would let Benny have until 17 November to agree to this price.

On 14 November Benny wrote a cheque of $1,800 as a “ten percent deposit” and included this in a letter to say that he agreed to the price of $18,000. Allan received and read this letter on 16 November.

On 15 November Allan sold the sports car to his brother Alex for $17,000.

Discuss whether Allan and Benny have entered into a contract for the sports car.

[60 marks]

QUESTION 2

Write short notes on the following:

a) Specific Performance

b) Condition and Warranty

c) Intention to Create Legal Relations

d) Valid Acceptance

[40 marks]

- END OF PAPER-

TABLE OF CONTENT

No. Title Number of Pages

1.0 Cover Paper вЂ" Goh Jhen Nee 1

2.0 Questions Paper 2

3.0 Table of Content 3

4.0 Question 1 - Facts 4

4.1 Question 1 - Invitation to Treat 5

4.2 Question 1 - Advertisement 6 - 7

4.3 Question 1 - Offer 8

4.4 Question 1 - Counter-offer 9 - 10

4.5 Question 1 - Lapse of Time 11

4.6 Question 1 - Postal Rule 11 - 13

4.7 Question 1 - Held 14

5.0 Question 2 (a) - Specific Performance 15 - 16

5.1 Question 2 (b) - Condition and Warranty 16 - 17

5.2 Question 2 (c) - Intention to Create Legal Relations 18 - 20

5.3 Question 2 (d) вЂ" Valid Acceptance 21

6.0 Reference 22 - 23

FACTS

Date Sequence of Events

11 November • Allan put an advertisement in the local newspaper to sell his sports car for $20,000 and the advertisement explained very clearly the condition of the sports car.

12 November • Benny called Allan and said he would be willing to pay $15,000 for the car.

• Allan said that he would only accept $18,000 and that he would let Benny have until 17 November to agree to his price.

14 November • Benny wrote a cheque of $1,800 as a вЂ?10% deposit’ and included the cheque in a letter to say that he agreed to the price of $18,000.

15 November • Allan sold the sports car to his brother Alex for $17,000.

16 November • Allan received the letter written by Benny.

Invitation to Treat

In contract law, an invitation to treat is an action by one party which may appear to be a contractual offer but which is actually inviting others to make an offer of their own. He or she can consider the invitation and accept it or may reject it. An invitation to treat