Task: You must write an answer to the problem-type question below, using the ILAC (Issues, Law, Application, Conclusion) format, a worked example of which is in the Resources folder. Dan owns a business which sells second-hand cars. He employs you as its legal advisor. Dan phones you one day and tells you about the following issues. The first relates to a customer named Mary who says that she was walking around the car lot and saw a white 2002 Honda Jazz for sale for $ 14 999. She went into Dan’s office and said that she would offer ‘$ 14 000 for the Honda Jazz’. He accepted the offer and Mary said that she would collect the car later that day. When she returned to the car lot, Dan handed her the keys of a red 2002 Honda Jazz, which had been at a different part of the car lot. Mary said ‘That’s not the car I bought’. Dan said ‘Well you just said you were buying Honda Jazz and this is the one I thought you were referring to, so here it is’. Mary walks off the car lot and has refused to pay for the red Jazz or take delivery of it. Dan says that as far as he is concerned, Mary should stick by the deal. Michael was interested in a 2015 Toyota CX truck that was advertised by Dan for $ 20 000. On 2 January Michael posted Dan a letter containing a form in which he offered to buy the truck for $ 18 500. There was a place on the form for Dan to sign indicating his acceptance. The letter reached Dan on 5 January. He signed the nominated place for acceptance, and put the acceptance into the post on 7 January. On 8 January, Michael phoned Dan and said ‘I’ve had second thoughts about the truck, and as I haven’t heard back from you I am hereby formally revoking my offer to buy the truck’. Dan said ‘Too late, I’m delivering it today.’ Later that day, he delivered the truck to Michael’s premises, but Michael refused to accept it. Dan’s letter of acceptance reaches Michael only on 10 November. One of the salespeople employed by Dan is new, so Dan does not allow him to make deals and requires that the salesman bring any prospective contracts to him (Dan) to sign once they have been signed by a customer. One afternoon the salesman brings Dan five contracts all at once. Dan is in a rush and signs them without looking them over properly. The salesman sends the signed contracts to each of the customers by email. The next day one of the customers, Gordon, comes to the lot to collect the truck he has bought. When Dan sees Gordon getting into the truck he rushes over and says ‘Sorry, I was keeping that truck back for my nephew to buy’. Gordon says that he received the contract which had been signed by Dan, and that he has already taken orders from clients to transport goods. Dan says ‘Well too bad, I signed that contract by accident and didn’t mean to agree to it.’ Gordon’s lawyer has sent Dan a letter demanding that Dan comply with the contract. Edgar was walking round the car lot and saw a 2014 Holden Statesman with a sticker saying ‘$ 10 000’ on the windshield. He goes into Dan’s office and says ‘I agree to buy the 2009 Holden Statesman you are offering for $ 10 000.’ Dan realizes that one of his workers misprinted the sticker and says ‘Sorry, the actual price of that vehicle is $ 15 000, so no deal.’ Dan has received a letter from Edgar’s lawyer demanding that he (Dan) perform under the contract and accept $ 10 000 for the car. Advise Dan as to his legal position in each case. You should substantiate your statements of law with legal authority. You must confine your research to the law contained in Topics 5 and 6 only.
Subject Name: Corporation Law_x000D_
Level: Undergraduate
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