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Week 4 Tutorial Questions (Done)

1. The document contains 6 questions regarding contract law scenarios. It asks the reader to analyze whether the parties in each scenario entered into a valid and enforceable contract. The questions cover issues like offer and acceptance, consideration, intention to create legal relations, and whether purported contracts were made under duress. 2. The document provides guidance on how to structure a response, including discussing the elements of agreement, consideration, and intention to create legal relations for each scenario. It also prompts the reader to advise whether one party could sue another based on the contractual analysis. 3. The scenarios involve situations like a consumer changing their mind on a purchase, time limits on offers, modification of repair contracts, promises of reward

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Vy Pham
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19 views

Week 4 Tutorial Questions (Done)

1. The document contains 6 questions regarding contract law scenarios. It asks the reader to analyze whether the parties in each scenario entered into a valid and enforceable contract. The questions cover issues like offer and acceptance, consideration, intention to create legal relations, and whether purported contracts were made under duress. 2. The document provides guidance on how to structure a response, including discussing the elements of agreement, consideration, and intention to create legal relations for each scenario. It also prompts the reader to advise whether one party could sue another based on the contractual analysis. 3. The scenarios involve situations like a consumer changing their mind on a purchase, time limits on offers, modification of repair contracts, promises of reward

Uploaded by

Vy Pham
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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RMIT Classification: Trusted

RMIT
Classifi
cation:
Truste
d

Week 4 – Forming a Contract


Tutorial Questions
1. Minnie is shopping for a new iPhone. She goes to an Apple store and checks out their range of
iPhones. She discovers that the iPhone X is on sale. She finds a small stack of iPhone X with
sign: “Special offer! Only $999”. She takes one off the stack and brings it to the counter and
says to the cashier, “I would like to take this one”. She then remembers seeing iPhones X on
sale for $850 at another store. The cashier does not say anything and before she can ring it up,
Minnie tells the cashier that she has changed her mind. The cashier tells Minnie it is now too
late, and that Minnie would have to buy the iPhone X, and that Minnie is legally obligated. Is
the cashier correct?
Required: Discuss whether there is an agreement between Minnie the Apple shop.
Offer: invitation to treat (yes)
Revocation: (yes): offer is dead
Acceptance: invalid acceptance (new offer)
2. On January 1st, company A (seller) sent a letter to Company B (buyer) offering to sell 500
computers for $25,000. The letter stated that “this offer is binding and irrevocable until
February 1st”. On January 5th, before the buyer received the letter, the seller telephoned the
buyer and left a message on the answering machine at the buyer’s place of business, stating
that the offer was now withdrawn. On January 7th the original letter arrived, and the buyer then
listened to the message on the answering machine. After reading the letter and listening to the
message, the buyer decided to send a fax to the seller stating, “I accept the offer that you sent
on the 1st of January.”
Required: Discuss whether there is a binding contract between company A and company
B. Explain your reasons why or why not.
1. Agreement:
+Offer: (y) 7th Jan-valid
+Revokation: (yes,obvious) listened…
+Acceptance: (new offer)invalid??
+Option contract: no(A can revoke anytime)
2. Consideration:(no)
3. Intention to legal relations:
3. On March 1st, Bob gets into a contract with Mike. The contract specifies that “Bob will do
everything to repair Mike’s iPhone’, and ‘the cost of the service is $100”. Bob takes the phone

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RMIT Classification: Trusted
RMIT
Classifi
cation:
Truste
d

home to repair it but as he opens the phone and begins to really look at it, he discovers that the
job is very difficult and will take him much longer than he expected.
On March 5th, Bob calls Mike and says, “Hey Mike, this job is going to take me much longer
than I thought. I will now have to charge you $150.” Mike responds, “But we have a contract
for $100. I really don’t think I should have to pay more than that.” Bob then responds by
saying he won’t fix the phone then.” Mike finally agrees to pay the $150 new price that Bob
quoted.
March 9th, Bob finishes fixing the phone and returns it to Mike. Mike pays Bob only $100.
Required: Discuss the relevant legal issues and advise Bob if he can sue for the additional
$50.
1. Agreement:
+Offer: yes (a new offer)
No open offer-> not counteroffer

R1: Original contract R2: Modified contract

A: (yes) O + A (YES) A: (yes) O + A (YES)


C: bob: do anything to repair the phone C: bob : duty imposed by contract
I: yes I: yes
 $100  $150

Reasonably know
+Revokation:
+Acceptance:
+Option contract:
2. Consideration:
3. Intention to legal relations:

4. Abby is in the water and a big wave crash over him and sends him out further into the ocean.
He cannot swim and yells for help. Brett sees that and jumps in to save Abby. Abby is so
grateful and tells Brett he will give him $5000. The next day Brett comes to Abby’s house for
the money and Abby says he will not pay him.
Required: Discuss whether Abby and Brett have an enforceable contract.

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RMIT Classification: Trusted
RMIT
Classifi
cation:
Truste
d

5. Quynh lived with her uncle Truong and his family in HCMC. She was an excellent student,
and she won a full scholarship with all expenses paid to study her MBA at Harvard University.
Truong didn't want to see her leave, so he told her "if you stay here in Vietnam and get your
MBA at RMIT (where she would have to pay tuition) instead, I will give you ownership of this
house upon completion of your degree, because you are my favourite niece".
Quynh stayed, but upon receiving her MBA, Truong refused to give her the house.
Required: Discuss whether there is an enforceable contract between Quynh and Truong?
A: O + A
C: yes
I:?

6. Steve and Mike are good friends. Mike is the sheriff of the town. One night, Steve notices that
there is a burglar in his house and goes to the toilet and calls Mike. Mike asks if the burglar is
armed and has a gun. Steve says yes, the burglar appears to have a shotgun and seems to be
very dangerous. Mike replies that he only has a small pistol and that it might not scare away
the burglar. Steve says he will give him $1000 if Mike comes over to scare the burglar away.
Mike agrees and comes over and scares the burglar away, even though he is on his annual
leave that night and is also not in charge of the district in which Steve is living. Steve then
refuses to pay Mike.
Required:
a) Discuss whether Steve and Mike have an enforceable contract?
A: yes
I: yes ()
C: (yes) duty imposed by law
b) Assuming that Mike is on duty that night and he is also in charge of the district in
which Steve is living, discuss whether Steve and Mike have an enforceable
contract.

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