Contract II (Vitiating Factors, Discharge & Remedies) - Tutorial

Contract II (Vitiating Factors, Discharge & Remedies) - Tutorial

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N GEE A NN P OLYTECHNIC S CHOOL OF F ILM M EDIA S TUDIES  M EDIA L AW : C ONTRACT II V ITIATING F ACTORS , D ISCHARGE & R EMEDIES  1. Terence advertises a second-hand car in his sales showroom. ‘Toyota – 2003. Excellent condition. 60,000 miles. One Previous owner. $30,000 only. Suitable for racing.’ Jared goes down and views it. Terence tells Jared that “It is in fine condition but have it independently checked if you wish.” Jared replies that it will not be necessary because he is content to rely on Terence’s fine reputation. He then buys the car for $30,000. A year later Jared discovers that three different owners had owned the car previously, had done 600,000 miles and was worth only $10,000 at the time of the sale. Furthermore, it has proved unsuitable for racing. Advise Jared if he has got a case against Terence and whether he will be able to succeed. 2. Peter had arranged with Mr. Alan Lee, a retired law lecturer, to give Peter’s son, Richard, tuition of two one-hour lessons a week for ten weeks to prepare him for his Contract Law examination. It was agreed that Peter would pay Mr. Lee $1,000 at the beginning of the tuition classes and a further $2,000 at the end. After five lessons Richard had a nervous breakdown and was obviously not going to be able to take the examination. Peter therefore cancelled the rest of the tuition. Mr. Lee had spent a considerable amount of time preparing for the lessons and had bought the latest edition of the set textbooks. Do you think Mr. Le has a case against Peter? If yes, will Mr.
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