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LAW20019 Law Of Commerce

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Question:

Issue

i.Who made the offer?

ii.Whether there is a valid contract amid Sally and Harry?

iii.Would it make any difference if Harry worried about possible delays in the postal service, sent his reply by email instead?

1.Bruce paints reproductions and sells them from his house on weekends and Wednesday evenings.  One Sunday Sylvana visits his studio and admires a painting of a vase of bushflowers.  The price tag indicates it is for sale for $500.00.  Sylvana offers $400.00 for it but Bruce says that he could not accept less than $425.00 because this would cover his costs and allow a small profit.

Sylvana indicates that would be a good price but asks Bruce to hold the painting so her husband could also look at it and approve her decision.  However, Sylvana points out that the earliest her husband could do so would be the next Saturday.  Bruce said that would be fine and gave Sylvana a form that read:

  • Bruce agrees to sell to Sylvana one framed canvass reproduction of vase of bushflowers for $425.00.  This offer remains for 7 days only from the date hereof.
  • Signed: Bruce. (14 February).

The following Wednesday, 17 February, Salomon, an art enthusiast, visited Bruce’s studio and was very impressed by the painting of a vase of bushflowers.  Without haggling over the price and telling Bruce that it was a bargain for the quality of the work, he bought the painting for $500.00 and took it away with him.

The following morning Bruce phoned Sylvana and left a message on her answering machine saying that the painting had been sold for $500.00.  What Bruce did not know was that Sylvana’s answering machine stops recording after 15 seconds by which time Bruce had only given his name, phone number and that he was calling about a painting she wanted to buy.  Sylvana did not return the call.

(a) Is there a contract?

(b) Which legal system would have jurisdiction over the dispute?

3.Peter is interested in buying indigenous art and contacted Martin, the art collector, who sold him a painting.  Martin has described it as a painting done by a well-known local Nunga indigenous artist.

A week later, Peter buys the painting for $5,000 without further consultation. He later discovers that it is in fact a fake which has been done by a local non-indigenous artist, which is worth considerably less than what he has paid for it.  

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