Yusof works as a car salesman at Luxury Car Dealers Answers

Yusof works as a car salesman at Luxury Car Dealers. On 2nd January Kenny saw an advertisement of Luxury Car Dealers and telephones Yusof and asked if he could trade in his Range Rover. Yusof says that he is happy to accept Kenny’s car but he would need to inspect the car before the sale is finalised. Kenny visits Yusof the next day and say ‘it is yours for $ 185,000.’ Yusof examines the car and replies ‘I love it but $185,000 is too expensive for the Range Rover’. Yusof says he will buy the car for $135,000. Kenny claims that his car is in a perfect condition and $135,000 is too low for his car. Yusof says he need to speak to his employer before he accepts to buy the car for $185,000.

Yusof’s employer agrees to buy the car for $185,000. On 4th January Yusof sent a text message to Kenny stating that he would buy the car for $185,000 and will assume this is acceptable unless Kenny tells him otherwise.

On 3rd January Kenny met his friend Aisyah and he made an offer to sell his car to her for $185,000. On 5th January Kenny emailed Aisyah stating that he has found a buyer for his car. However, she replied stating that she agrees to buy Kenny’s car for $185,000.

Discuss, incorporating your understanding of contract law, the following:

a. Whether a contract was formed. If so, when was it formed and who were the contracting parties?

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Law Sample Answers: Answers to Above Commercial Law Question

Expert Answer 1: The formulation of a contract between two parties is determined on the basis of fulfillment of certain elements of a valid contract. These elements include offer, acceptance, consideration, willingness to create legal relations, and capacity to enter into a contract. In the given case scenario of Yusof, the analysis of whether a contract was formed and if it is formed, who were the contracting parties is analysed as follows:
The analysis of the case indicates that Kenny has seen an ad and he expresses his interest to trade in the car. He made a call to Yusof showing his interest, but Yusof says that he must inspect the car first. At this point of time there is no offer made and it is simply a negotiation between the two parties. On 3rd January, there was a meeting between both of them and the price offered for the car is $185000. In reply to this, a counter offer of $135000 was made by Kenny to Yusof which has been declined by Yusof saying it’s too low and he needs to talk to his employer first. This indicates that the offer of Kenny of $185000 is not valid as the counter offer is made by Yusof.
To learn whether a valid offer and acceptance takes place between these parties, connect with our law assignment help experts in Singapore.

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