Case Study 2 - The 5000 dollar car Overview

Facts: John puts an advertisement on an online marketplace stating that he wants to sell his car for $5000. Anthony sees the advert and contacts John for his address. He drives to see the car and after inspecting it, hands him the money in cash.

John accepts the money and says "Congratulations, hope you enjoy the car!". When Steve pulls up at John's home. John had forgotten that he had Steve scheduled to view the car.

Steve gets angry and tells John that he should not have sold the car because they had a verbal agreement.

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Question 2(a)What is the type of contract that applies to the facts in Case 2? Explain your reasoning. Your answer should be approximately 40 - 60 words.

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Question 2(b)In the transaction between John and Anthony, set out the offer and acceptance.

In relation to Steve and Anthony, was there a verbal contract? In contract law, what is the legal description of Steve reading the advertisement for the sale of John's car on an online marketplace?

At least one decided case example should be used to support your answer.

Your answer should be approximately 50 - 80 words.

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Question 2(c)Explain the type of discharge of the John and Anthony contract which applies.

Researchat leastone (1) decided case to support your opinion, For example:Hoenig v Isaacs[1952] 2 All ER 176.

Your answer should be approximately 90 to 120 words. You MUST reference your sources.