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Alan merely smiled as a reply to her statement as he thought that she must be out ofher mind to be interested in reading up on commercial law as she was still veryyoung. Alan nodded his head when she asked if she can pay him the money on 6Nov, but he was thinking about his favorite football team’s match on the previousweekend and not aware of what Charleen said. It is clear that Alan was not having aclear mind when he “agreed”. However, Charleen had entered a valid contract withAlan as all four components of forming a contract was fulfilled. Therefore, Charleencan initiate a breach of contract against Alan when he disregarded her and sold histextbook and notes to other parties. Rule/LawThe law states that when a party of a contract does not fulfil his or her obligations, itis a break of contract (Wallis v Pratt,1910). The other party does not need to fulfill hisor her obligations in the contract. The party who fulfilled his or her obligations has therights to cancel and reverse the contact. Damages can be claimed in four type,general damages, special damages, nominal damages and punitive damages("Breach of Contract in Singapore", 2014). ApplicationIn this case, Alan and Charleen entered a valid contract even though Alan wasabsent minded when he agreed to sell his book to her. Moreover, Charleen fulfilledher obligations in the contract when she left $200 on Alan’s table and gave herconsideration to Alan. Therefore, Charleen has the right to claim compensation forthe same from Alan together with other monetary benefits associated with this matter.In this matter, Charleen can claim her compensation under general damages. ConclusionIn conclusion, in Charleen’s stand, she has entered a valid contract with Alan. thisgives her the right to lawfully enforce Alan to fulfill his obligations in the contract or filea breach of contract against Alan to request for a compensation. Although it is a validcontract, Alan can also terminate the contract or protect himself if he is able to provethat he was not in the right state of mind when he agreed to the deal.
Question FourLegal IssuesDamien who is not a friend of Alan on Facebook heard about the offer from his friend,Bernard. Alan’s offer was not available for Damien as it was not available andaccessible to him. Therefore, it can be said that the offer was not given to Damien. Inaddition to that, there was no proof showing that Alan agreed to Damien’s SMS.However, Damien fulfilled his consideration when he passed Alan the money on 4Nov. Upon receiving the money, Alan promised to perform his part and passeverything to Damien on 7 Nov. This shows that Alan had agreed to enter a contractwith Damien. Alan then passed a new textbook he bought at a bookstore and hishand-written notes to Damien. However, Damien was expecting to receive theoriginal copy of the textbook and not a new one that was purchased by Alan at abookstore.