Alice wishes to buy Sandy's German Shepherd dog, Tommy. After negotiations in early January, they agree on Tommy's price to be HKD10,000. Alice and Sandy decide that a written contract should be prepared and signed by both of them. Sandy asks her nephew, Billy, to type a written contract. Billy is just learning to type. Advise Sandy in the following situations: 

 

Situation 1: Billy types the contract, but mistakenly puts HKD1,000 as Tommy's price. Sandy does not see this discrepancy in price when she hurriedly signs the contract. Alice also signs the contract without noticing the error. 

 

Situation 2: Billy types the contract correctly, and Sandy, before signing it, shows it to Alice. Alice signs it, but secretively changes the price to HKD1,000. Sandy also signs the contract without noticing this change. 

 

Situation 3: Sandy and Alice cannot agree on the price of Tommy during negotiations with offers and counter-offers in the range of HKD5,000 to HKD15,000. Sandy asks Billy to type an offer letter to be sent to Alice with HKD10,000 as the price. Billy mistakenly types HKD1,000 as the price and sends the letter to Alice, who accepts the offer immediately. 

 

Situation 4: On 20 January, Alice buys a wooden dog house worth HKD5,000 for Tommy. Alice and Sandy signs the contract on 25 January. It was later discovered that Tommy has died on the evening of 24 January. However, as Tommy used to stay mostly at Sandy's farmhouse in a remote part of Sai Kung, she did not know about Tommy's death at the time of signing the contract. Alice is now demanding that Sandy should pay her HKD5,000.

Answer rating: 100% (QA)

In these situations 1 Situation 1 Both parties are bound by the terms of the written contract they s... View the full answer