1.

Elements plc is the parent company in a group of companies operating in the production and distribution of water-sports equipment in the United Kingdom.

Elements plc holds the majority of shares in Aqua Ltd, which supplies the watersports equipment to local sellers. The remaining shares are held by two directors of Aqua Ltd, both of whom were appointed by Elements plc.

Swimmers Ltd is one Aqua Ltd's major suppliers and creditors. It has been striving to obtain payment for deliveries supplied to Aqua Ltd. However, it has recently learnt that Aqua Ltd has ceased trading. Moreover, it seems that in the last five months, materials delivered to Aqua Ltd, and orders received by Aqua Ltd, were all passed on to Waterfalls Ltd. Waterfalls Ltd is a wholly-owned subsidiary of Elements plc, and was only recently incorporated.

With reference to the UK common law:

Advise Swimmers Ltd whether it can obtain payment from either Elements plc or Waterfalls Ltd in respect of the debts of Aqua Ltd.

2.

Khanh is the manager of a shop that sells high qualitypaintings and reproductions of famous artworks. On 1November she wrote to Kim and Suong, two establishedcustomers, offering the opportunities to purchasereproductions of a painting by a famous artist, eachsigned by the artist. The letter specified a price of 10million dong.

Khanh's first letter was to Kim. However, immediatelyafter sending the letter, Khanh discovered she has mis-typed the price as 1 million dong. Khanh immediatelywrote another letter withdrawing the offer and statingthe correct price of 10 million dong. Both letters werereceived by Kim in the same delivery. Kim wrote back toKhanh immediately accepting the offer of 1 million dong.

Suong replied to Khanh's letter stating that she would bedelighted to accept the offer, but as she was given a 15%discount for her 3 previous purchases she assumed thiswould apply again. Suong wrote back to accept the offerenclosing her payment of 8.5 million dong.

Khanh subsequently sold the painting to Ngoc for the fullprice of 10 million dong.

Required:

(a)Explain whether Kim has completeed a legally blinding contract with with Khanh by accepting the offer tho sell the painting for 1 million dong.

(b)Explain whether Kim has entered into a legally blinding contract with Suong and/ or Ngoc.

3.

Thomas is a brand-new car dealer. He has several new Toyota Camry 2.4 cars. He places an advertisement in the Saturday edition of his local newspaper stating: "New Toyota Camry 2.4: 20,000 cash."

When Ben sees the adverts he immediately posts a letter of acceptance of Thomas's offer. Carol also sees the advert and after inspecting the car, offers Thomas a cheque for 20.000, but he refuses to accept the cheque and tells her she cannot have the car.

Later in the day Dave asks Thomas if he will keep the offer open until he can get to his bank to arrange a loan. Thomas agrees but later in the day when Eric says that he will pay 20.000 in cash for the car he agrees to sell car to Eric.

On Monday morning Ben's letter arrives, and Dave returns to complete his purchase of the car. In the afternoon Eric phones Thomas to say that he has had second thoughts and no longer wishes to buy car.

Required:

Consider the above situation with the respect to the rules governing the elements of contracts under the UK common law:

1. Whether Ben has entered into a binding contract with Thomas.

2. Whether Carol has entered into a binding contract with Thomas.

3. Whether Dave has entered into a binding contract with Thomas.

4. Whether Thomas has any right of action against Eric.

Explain your answer carefully and refer to any relevant cases in your materials.