Law problem scenario

Law problem scenario

Problem scenario, students are required to identify the relevant issues, state the applicable

principles of law, supported by authority, and apply the law to the given facts to arrive at a

Format
• Problem scenario, students are required to identify the relevant issues, state the applicable
principles of law, supported by authority, and apply the law to the given facts to arrive at a
conclusion.
Worth
15% of the final mark
Assignment Submission

Submission is on line via stream in either PDF or MS Word format.
Scenario
Ajax places the following advertisement in the local paper:
For Sale
1965 Mercedes 220S
Fully restored
$20,000
Reply Box 12345 or telephone 02 345678
On Tuesday morning, Ajax receives a letter from Achilles in which Achilles agrees to buy the car
and enclosing a cheque for $20,000. Before Ajax can do anything about this he receives a
telephone call from Penelope, a keen collector of veteran motor vehicles, offering $25,000 –
provided payment can be by two instalments, $15,000 immediately and $10,000 in a month’s
time. Ajax replies that while the additional $5,000 is welcome, he needs the cash urgently and
would require payment of the full amount by the following Friday at the latest. Penelope asks
for time to think about this and Ajax gives her until noon the following Thursday. On Thursday
morning Penelope tells Ajax that she cannot raise the money and regretfully withdraws from the
deal. Ajax immediately presents Achilles’s cheque at the bank only to be told that payment has
been stopped. When Ajax contacts Achilles he is told that since Achilles had heard nothing from
Ajax he assumed the deal was off.
Required:
Advise Ajax on his contractual position as regards Achilles.

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