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The Law and You Tutor-Marked Assignment 01 July 2015 Semester GSP165 Tutor-Marked Assignment

SIM UNIVERSITY Tutor-Marked Assignment – Page 2 of 4 TUTOR-MARKED ASSIGNMENT

This tutor-marked assignment is worth 40% of the final mark for GSP165 The Law and You. The cut-off date for this assignment is 2359 hours on 6 August 2015.

_________________________________________________________________________________ Submit your solution document in the form of a single MS Word file through MyUnisim Blackboard on or before the cut-off date shown above.

Additional instructions: 1. You will need to indicate clearly on the front page your name, student ID, course title and assignment number.

2. You must document all information that you use from another source, or you will be penalised severely. If you copy from the work of another student, regardless of the course or programme, you will be severely penalised. You are required to submit this assignment within the stipulated cut-off date. You are not permitted to re-use material from past assignments whether in part or in full. All of the above actions can result in your failing the TMA.

_________________________________________________________________________________ Scope This TMA tests your ability to: - Outline the basic principles of Contract Law.

- Cite the laws that are set in motion by a breach of contract. - Apply their knowledge in daily situations where this area of law comes into play.

- Make informed decisions in respect of matters covered in the topics of the course, such as engaging in contracts.

- Recognize and identify the need for professional advice where necessary.

In addition to lecture slides and notes provided in this course, you may wish to go through cited textbook extracts referred to in the Study Guide for more in-depth understanding of the topics covered in this assignment. GSP165 Tutor-Marked Assignment

SIM UNIVERSITY Tutor-Marked Assignment – Page 3 of 4 Read the following case carefully and answer the questions that follow:-

Ken and Samuel were enjoying a round of drinks after work. Ken told Samuel that he was under financial stress, and was looking to sell his terrace house as soon as possible. His wife had quit her job to look after their children. His business was also dull. He also said that he wanted to sell one of the 2 family cars, as the maintenance did not make economic sense.

Samuel was always on the lookout for good bargains. Therefore, Samuel asked Ken if he had any price in mind for his house. Ken said that he had not had any valuation done yet, and that he had to pay up debts of about $450,000. His property agent was working on his case.

Samuel then asked if he had any price in mind for the car. Ken answered that he did not, but added that he would be willing to consider anything above $80,000 for his 9-year old car. In this instance, Ken was referring to the Toyota Estima (a multi-purpose vehicle, or MPV). However, Samuel thought that Ken was referring to the Porsche Cayenne, which is a luxury Sports Utilities Vehicle (SUV). Both cars were about 9 years old.

2 days later, Samuel called Ken on the telephone, and said that he would like to offer him the following deals:

1. He made an offer to buy Ken's house at a price of $688,000. Samuel said that it would be more than sufficient to cover Ken's debts of $450,000. 2. He also made an offer to buy Ken's car at a price of $88,000. Samuel said that a car that was 9 years old would fetch around that price in the market. Ken agreed, and confirmed that they had 2 deals. Samuel was very pleased with himself. He knew that the house would fetch no less than $1 million, and that the SUV would cost no less than $150,000. Since Ken had agreed, Samuel thought that he had "locked" him in at very low prices.

The next day, Ken called Samuel and apologized, saying that he could not sell the house to Samuel, as the property agent had brought a buyer who offered him $1.2 million. Ken said that the Option to Purchase had already been granted to the buyer. Samuel was furious. He shouted at Ken stating that they had "sealed" a deal over the telephone the previous day, and that he would sue him if he did not sell the house as agreed at $688,000. Ken was shocked at Samuel's outburst and hung up the telephone. Samuel tried to call him several times after that, but Ken ignored or rejected his calls.

Samuel then sent Ken a text message, stating that Ken had better at least kept his word that he would sell the SUV to him at $88,000. Ken replied by text message, stating that he had never intended to sell his SUV, and that Samuel was still welcome to buy his MPV at $88,000. Samuel is now completely mad. He knows that you attended the GSP 165 course. Samuel wants your opinion on the following matters:

GSP165 Tutor-Marked Assignment SIM UNIVERSITY Tutor-Marked Assignment – Page 4 of 4

Apply the principles of Contract Law that you have learnt to the facts of the above case. Identify the facts relating to the 2 subject matters that Ken and Samuel are quarrelling about, i.e. the house and the car. In each case, argue your case as to whether or not there was a valid and binding contract made between Ken and Samuel. (About 200 – 300 words) [90 marks]

Finally, answer Samuel's ultimate question: Did Ken breach the 2 contracts, or not? (About 15 – 25 words) [10 marks] Guidance Notes

1. Submit your assignment in the form of a single MS Word file on or before the cut-off date shown above. 2. Please use one of the following fonts:

(a) Palatino Linotype (b) Arial

(c) Calibri 3. Font size must be 12.

4. The document must be in double-spaced lines. 5. The best answers to this TMA will be the ones that offer original, thoughtful ideas and arguments. 6. You must use proper referencing and citation formats, where necessary.

7. Remember to use accurate grammar, correct sentence structures and a tone appropriate to academic writing. ----- END OF GSP165 TMA01 -----