Contract Legal Studies
Jack Daniels is the owner of a Porsche motorcar. He had purchased it some weeks previously for $100,000. He is suddenly in urgent need of money and places an advertisement in the Adelaide Advertiser as follows:
‘For sale, an immaculate silver Porsche motorcar, bargain at $75,000. This is a genuine sale and the owner will not accept offers. The first person to deposit $5,000 to the credit of Jack Daniels at the Glenelg branch of the State Bank will be treated as the successful purchaser. The balance of the purchase price will be payable on delivery of the vehicle.’
Harry Smith deposited his cheque for the sum of $5,000 with the Glenelg branch of the State Bank and advised Jack of his acceptance of the offer. Paul Jones also saw the advertisement and wishing to buy the car but in error deposited $5,000 in cash with the State Bank City branch. Subsequently it was discovered that the Porsche had been in a serious accident and was valued at only $40,000. Neither Harry nor Paul are now willing to proceed with the transaction.
Jack suffered a serious loss as he had an opportunity to purchase shares with the proceeds of the sale of the car. The shares that could have been purchased for $75,000 have increased in value to $150,000. Explain the rights of the parties to this transaction.
Criteria by which the assignment will be marked:
Ability to identify and explain legal principles
How the answer covers all issues
Logical development of the legal arguments
Citation of appropriate cases
Clarity of expression
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