UCL Section B Continue

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Question 5

Chuck advertised his BMW car for sale at $200,000 cash. Charles came to accept the offer, but told

Chuck he could only pay $100,000 cash and promised to pay the remaining $100,000 in two

installments. Chuck said nothing.

Shortly after, Don came to view the car, and told Chuck that if he (Don) hears no more from Chuck

by the next day, he will consider the car as his for $140,000. Again, Chuck remained silent. 

Later that the evening, Eric came to view the car and told Chuck that $200,000 was “rather

expensive”. He asked if Chuck would accept $120,000 cash. Chuck rejected this.

The next day, Fred came to view the car and after some discussion, agreed to Chuck’s price of

$200,000. Chuck sold the BMW car to Fred for $200,000.

Charles, Don and Eric each believe they have a legally binding contract with Chuck, and as such are

now contemplating legal action against him for “breach of contract”.

Required: Advise the parties of their legal positions with regards to contract law.

Question 6

Richard entered into negotiations with Jasmine, a property agent, for the purchase of a five-room re-

sale flat in the Redhill area.

Richard told Jasmine that the flat he wished to purchase must be free of any adverse incident in its

history. In other words, nothing terrible must have happened inside the flat. Richard explained that

his wife was very superstitious over such matters.

Two weeks later, Jasmine chanced upon a seller of a five-room flat in the Redhill area who wished to

sell his flat due to a murder that occurred in that flat when it was rented out to foreign workers.

Believing that Richard would never know the truth behind the flat’s history, Jasmine took it upon

herself to make false representations to Richard in an effort to get the flat sold to him and thereby

earn her commission.

Jasmine then told Richard that she had found a flat for him. After viewing the flat, Richard again

stipulated his condition that nothing out of the ordinary should have happened in the flat. Jasmine

assured him that no such incident had occurred, stating that the current owners were selling the flat

because they were emigrating to Australia.

After buying the flat and moving in, Richard’s neighbour told him that the former occupants of flat

were two China nationals who were renting it while working in Singapore and that one day, during a

drinking session, one killed the other in the flat. The previous owner, said the neighbour, felt that

the flat carried a bad omen now and decided to sell it off. Adding further, the neighbour said he was

surprised that Richard did not know this before buying the flat.

Required: Enraged, Richard now intends to rescind the contract. Discuss the grounds upon which the

contract for the sale of flat could be rescinded.

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