Problem based exercises on Law - Case Study Example

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First of all, based on Gemstone's letter, we can clearly this that it is a contractual formation since it satisfies the five key requirements for the formation of a contract according to the Common Law:
Concerning the offer, since Gemstone clearly stated that the offer is being made to the "members of the yatch club", this implies that a contract is being established between Gemstone and the members…
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Download file to see previous pages The letter stated that the offer was "exclusively" being made to the "members" of the yatch club against payment of $80,000. The letter also states that the first member to accept the offer will receive the yatch, hence according to the Sales of Goods Act 1979 Section 18 (3), in case of sales on approval, property passes when the buyer signifies his acceptance to the seller.
3. At 8 pm, Dandy, a club "visitor" rang Gemstone, Mrs Gemstone answered in the absence of her husband and Dandy proposed $90,000 for the yatch. Not being a "member" of the yatch club, Dandy does not fulfill the contract according to the Contract Law, since he has not been offered a deal to accept. However, it can be considered that Dandy is now making an offer for Gemstone to accept, but since Mrs Gemstone did not clearly state that she is accepting the offer (she only replied "My husband will be pleased. He asked me to receive any acceptances as he is away tonight. I suggestto arrange delivery") See Gibson v Manchester City Council 1979 1 AER 972, where using the word "suggest" merely illustrates final arrangements, but does not show that any stage the offer has been accepted.
4. Chuck posted his acceptance letter at 9 pm. ...
I suggestto arrange delivery") See Gibson v Manchester City Council 1979 1 AER 972, where using the word "suggest" merely illustrates final arrangements, but does not show that any stage the offer has been accepted.
4. Chuck posted his acceptance letter at 9 pm. According to the Contract Law, an offer is acceptance at the time the letter is posted, irrespective of the time the letter reaches destination or even if it does not reach destination. see Byrne v Van Tienhoven (1880) 5 CPD 344 in which it is stated that an offer is accepted once it leaves the hands of the person. Since Chuck is a member of the club, and he is the first to accept Gemstone's offer, legally according to point 2 above, he is the righteous person to claim the yatch.
5. Slick, also being a club member sent his acceptance by mail at 9.30 pm, hence 30 minutes after Chuck. Thus the contract having already been formed being Chuck and Gemstone, Gemstone having clearly stated that the first member to accept will receive the yatch, Slick has no legal right to claim for the yatch.

As we can see, Gemstone wants to deliver the yatch to Dandy. Considering all the above points, Chuck is now the righteous owner of the yatch legally. Slick cannot make any legal claim since he was not the first member to accept Gemstone's offer. So, legally, the yatch should be delivered to Chuck.

However if Gemstone persists and delivers the yatch to Dandy, he will be making a major breach in the contact with Chuck, who can sue Gemstone immediately for damages.
Question Two

This case discusses about an "Oral" Contract, that is, one which is not a drafted formal contract between the two parties and where there exists neither evidence nor proof in writing and signed documents. Generally an oral ...Download file to see next pagesRead More
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