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Unformatted text preview: design. Because Liew Lian trusts Rambo’s aesthetic sense, all
aspects of the design and fabrication of the earrings are left to Rambo’s discretion. The
total contract price for the diamond, design, as well as the fabrication, workmanship, and
2 LGST101 additional materials, amounts to $20,000. However, upon learning of the disaster at the
Bank, Liew Lian immediately calls Rambo to call off the contract, as she feels it is
pointless to purchase the earrings now that the necklace has been destroyed. Aghast by
and indignant at Liew Lian’s fickle-mindedness, Rambo decides to start work on the
design of the earrings nonetheless. Three weeks later, he delivers the earrings to Liew
Lian together with an invoice for $20,000.
Advise Liew Lian if she is liable to pay the full invoiced price to Rambo.
Assume that amongst the contents of the safe deposit box was a string of rare South Sea
pearls that Liew Lian inherited from her aunt. As she does not like pearls at all, Liew
Lian has, one week prior to the disaster at Banana Bank, entered into a contract to sell
the pearls to Apple Khor at the price of $10,000. Apple has paid a deposit of $5,000
with the balance $5,000 to be paid upon delivery of the pearls a month later when Apple
returns from h...
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- Spring '14