COMMERCE 393 PRACTICE MIDTERM 2013
DUE: FEB 25 (Section 203), FEB 26 (Sections 204 and 205)
Please hand in a hard copy in class. This practice midterm is OPTIONAL, however if you
complete it, it will count 3% towards class participation.
Francine, of Francine’s Used Car Dealership, offered to sell her used car to Beth at a price of
$5,000 in a letter mailed October 1. The letter arrived at Beth’s office on October 3, but at the
time it arrived Beth was out of town on a business trip.
On October 7 Wendy made Francine’s an offer to buy the same car that Francine’s had
previously offered to Beth. Wendy offered to pay $5,250 for the car. Francine’s accepted
Wendy’s offer and the deal was recorded in writing and signed by both parties on October 8 .
Beth returned from her business trip on October 21. After reading Francine’s offer, Beth mailed
her acceptance back. On October 22, hearing that Beth was now back from her trip, Francine’s
telephoned to revoke the offer. Francine’s received Beth’s letter of acceptance on October 24.
a) 10 MARKS 15 MINUTES
Assess Francine’s potential legal liability to Beth and Wendy, giving full reasons for your
b) 10 MARKS 15 MINUTES
Assume that Francine’s and Beth have a contract. According to their contract Beth was to
pay a deposit of $2500 and another $2500 when she came to pick up the car. The radio in
the car did not work and part of the contract was that Francine’s would repair it before Beth
picked up the car. Francine’s called Beth on October 30 to say the radio was fixed and the
car was ready to go. That night the car was stolen from Francine’s garage and has not been
found. Beth insists that Francine’s return her $2500. Francine’s insists that Beth pay the
remaining $2500. Who is likely to win this dispute?
c) 10 MARKS 15 MINUTES
Assume the same facts as in part b) above but that the car was not tholen. Beth picked up
the car on October 30 and paid the balance owing. On November 5 , Beth was driving out to
UBC and suddenly noticed smoke coming out of the front of the car. She managed to make it
to a garage where she was told that the engine needed to be replaced and the repairs would