200184 Introduction to Business Law
ASSIGNMENT QUESTIONS (Q1 2016)
Attempt all Questions
Total Marks: 30
Due Date: 09 March 2016 by 11:59PM
Question 1
Johnny offered to sell his server to Richard for $ 2000, saying he would keep the offer open
for 3 days. The next day Johnny phoned Richard and said he was withdrawing the offer
because he had received an offer of $2500 from Mary. Richard however said he would
accept the offer now because Johnny did have to keep it open for the full 3 days.
With whom has Johnny reached an agreement? (5 marks)
Issue: The main legal issue is whether there was a valid agreement (offer and acceptance)
between two pairs, Johnny – Richard, and Mary – Johnny.
Rules:
For offer:
1st: Must be clear & complete. Must contain all key details about the offer such as: subject
matter, price and quantity.
2nd: An offer can only be accepted by the person to whom it is addressed.
3rd: Offers may be revoked (withdrawn) by the offeror any time before acceptance.
For acceptance:
1st: Acceptance must be complete and unconditional.
2nd: Offeror can require a certain method of acceptance by the offeree.
3rd: Acceptance must be communicated.
Analysis:
Firstly, we will inspect the first case between Johnny and Richard. It can be seen that the
Johnny’s offer to Richard is satisfied because it matches with two first rules for an offer. To
more specific, the offer of Johnny has completely information; subject matter is his server,
price is $2000. Additionally, this offer has clearly addressed person that is Richard so it only
be accepted by Richard. Although Richard accepts the offer because Johnny said he would
keep it open for 3 days, Johnny still has a right to cancel the offer because of 3rd rule for
offer. As a result, there is no agreement between Johnny and Richard.
Next, the second case between Mary and Johnny will be observed. In this situation, the
Mary’s offer to Johnny is a valid offer because it has specific price ($2500) and addresses to
Johnny. Nevertheless, Johnny has not any communication with Mary when he receives her
offer so that this violates 3rd rule of acceptance. Therefore, there is no agreement between
Mary and Johnny.
Conclusion:
Johnny reached an agreement with no one.
Question 2
Previously Simon and Jacklyn have discussed Jacklyn buying Simon’s car. Simon sends
Jacklyn an e-mail which says:
I am prepared to sell you my car for $20,000. Unless I hear back from you, and as you never
answer e-mails, I’ll assume we have a deal and I’ll deliver the car to your place on Saturday
morning at 10am.
Jacklyn, as Simon expected, did not answer the e-mail message. What would be the legal
implications if:
a) Simon delivers the car but Jacklyn refuses to pay or to accept delivery; (5 marks)
