Case Study Assessment

Part A: TWO Short Answer Application Questions (5 marks each)
Question 1
Jamie is 17 years old and is an apprentice mechanic. She decides to go to her local
electronic goods store, ‘Best Electrics’ to buy a portable gaming device to play games
during her lunch break. Jamie does not have the funds to purchase the portable
gaming device so she enters into a payment plan with ‘Best Electrics’. They provide
her with the portable device and she is required to make 4 monthly payments. Jamie
makes the first payment with ease but defaults on the remaining payments.
In your own words, explain whether Jamie is legally bound to the contract with ‘Best
Electrics’ given that she is 17. Ensure you explain the relevant law before justifying
your answer.
Question 2
Leo and Kenny are friends from University. Leo wanted to sell his car and asked Kenny
if he knew of anyone who would be interested in purchasing his car. Kenny said he
would be interested. They agree on a price of $17,000 to be electronically transferred
to Leo. The next week Leo and Kenny meet to fill out the transfer of vehicle forms and
Leo hands over the keys to Kenny. Leo informs Kenny he has yet to receive the
$17,000. Kenny apologises and tells Leo he forgot but will electronically transfer the
$17,000 to him when he gets home. Two weeks later and after 4 phone call reminders
Leo has yet to received any payment from Kenny. Kenny believe that he shouldn’t
have to pay and that the car should be a gift for his upcoming birthday.
In your own words, explain whether there is an intention to be legally bound for the
agreement between Leo and Kenny. Ensure you explain the relevant law in full before
justifying your answer.
Curtin College Singapore Assessment 2
PART B: ONE 4-Step Process Question (18 marks)
Jan is an elderly lady who lives in country WA and is looking to move closer to the city.
Before moving, she decides to hold a garage/yard sale (a sale of unwanted household
goods in the front of her house) to make a little extra money as well as to reduce her
possessions. Jan decides to put an advertisement in the local newspaper informing
the public of her yard sale on Sunday 9am-3pm.
On Sunday morning, Jan moves all her unwanted household goods to the front of her
yard and places price tags on each item. Richard was driving past Jan’s property and
sees the yard sale and decides to stop and have a look. Richard sees a coffee table
that he’s interested in and on the coffee table is a price tag of $200. Richard
approaches Jan and says, “Would you accept $150 for the coffee table?” Jan replies
no but says to Richard, “How about $170?” Richard looks at the coffee table but before
Richard could reply, Jan says, “Have a think about it and get back to me by 3pm today
before the yard sale closes.” Jan gives Richard her mobile number and tells him to
call her with his decision. Richard also gives Jan his mobile number and leaves to run
errands at a nearby shopping centre.
At 2.30pm Richard decides he would like to purchase the coffee table but has lost
Jan’s number. Luckily, he remembers Jan’s address so he quickly writes a letter
stating that he would be delighted to buy her coffee table at the price of $170, he
places a stamp on the letter and places it in the shopping centre post box.
At 2.50pm Jan calls Richard and tells him not to worry about replying to her as she
has decided to keep the coffee table. Richard claims he has already accepted and
Jan must sell the coffee table to him.
Using the four-step process and in your own words explain whether or not the element
of agreement has been satisfied between Jan and Richard. Is there an enforceable
contract between Jan and Richard?