Peter wants to sell one of his cars that has a diesel motor tohis nephew Brett. Brett is eager to purchase the car but Brett doesnot realise that one of his uncleâs cars is diesel.
Peter writes a letter to Brett as follows:
âDearBrett,
I know that you are interested in buying one of my cars. I wouldlike to give it to you but I know that you wonât accept charity.Therefore I will offer it to you for $500 (I reckon it is worthabout $2,000). If I donât hear from you by this Friday I take itthat you are happy to buy it for $500. I will then drop off the carto your place on the weekend.â
Regards,
Peterâ
Brett does not see the letter and there is no furthercommunication between Peter and Brett.
On Saturday, Peter delivers the diesel motor car to Brettâshome. Brett arrives home to discover the letter and the car fromhis uncle. Brett realises the car is diesel and he does not reallywant the car. However, Brett decides the car is still useful andstarts driving the car to and from university. After three weeksdriving the car Brett decides that he will return the car. He hasnot yet paid Peter any money. Peter thinks Brett is ungrateful anddemands full payment.
Brett wants to return the motor car to his uncle. Peter is angrywith his nephew and he demands payment for the car. Peter says hewill lodge a small claim and sue Brett for the money. Brett statesâwe are family and you canât sue me.â
Explain whether the uncle/nephewrelationship has any effect on whether or not there is a bindingagreement. 6 marks)
On the same telephone call Brett also says to Peter that âThereis no contract because I never agreed to anything. Peter says âItâsa bit late to return the car now. Youâve been driving itaroundâ.
Has Brett accepted an offer from Peterto purchase the motor car? (4 marks)
On the same telephone call Peter says that âI was being nice toyou and offering you the car at âmates ratesâ.
Could $500 be valid âconsiderationâfor a contract to sell the diesel motor car? Explain why/whynot? (4marks)
Brett tells Peter on the same telephone call âEven if you canconvince the judge that there was an agreement, I can get out of itbecause I didnât know you had a diesel car and I never wanted adiesel car. I thought all your cars were petrolâ. Is it correctthat Brett can avoid contractual obligations on the basis of hismistaken belief? Why/why not? (6 marks)
Peter wants to sell one of his cars that has a diesel motor tohis nephew Brett. Brett is eager to purchase the car but Brett doesnot realise that one of his uncleâs cars is diesel.
Peter writes a letter to Brett as follows:
âDearBrett,
I know that you are interested in buying one of my cars. I wouldlike to give it to you but I know that you wonât accept charity.Therefore I will offer it to you for $500 (I reckon it is worthabout $2,000). If I donât hear from you by this Friday I take itthat you are happy to buy it for $500. I will then drop off the carto your place on the weekend.â
Regards,
Peterâ
Brett does not see the letter and there is no furthercommunication between Peter and Brett.
On Saturday, Peter delivers the diesel motor car to Brettâshome. Brett arrives home to discover the letter and the car fromhis uncle. Brett realises the car is diesel and he does not reallywant the car. However, Brett decides the car is still useful andstarts driving the car to and from university. After three weeksdriving the car Brett decides that he will return the car. He hasnot yet paid Peter any money. Peter thinks Brett is ungrateful anddemands full payment.
Brett wants to return the motor car to his uncle. Peter is angrywith his nephew and he demands payment for the car. Peter says hewill lodge a small claim and sue Brett for the money. Brett statesâwe are family and you canât sue me.â
Explain whether the uncle/nephewrelationship has any effect on whether or not there is a bindingagreement. 6 marks)
On the same telephone call Brett also says to Peter that âThereis no contract because I never agreed to anything. Peter says âItâsa bit late to return the car now. Youâve been driving itaroundâ.
Has Brett accepted an offer from Peterto purchase the motor car? (4 marks)
On the same telephone call Peter says that âI was being nice toyou and offering you the car at âmates ratesâ.
Could $500 be valid âconsiderationâfor a contract to sell the diesel motor car? Explain why/whynot? (4marks)
Brett tells Peter on the same telephone call âEven if you canconvince the judge that there was an agreement, I can get out of itbecause I didnât know you had a diesel car and I never wanted adiesel car. I thought all your cars were petrolâ. Is it correctthat Brett can avoid contractual obligations on the basis of hismistaken belief? Why/why not? (6 marks)
