Sarah Gillman has been looking at properties to buy in Whanganui and has found the ideal house in the suburb of Tawhero, which is being sold by Thomas Davies being the legal owner of the property. Both Sarah and Thomas are over 18. The property was listed for $875,000 and Sarah made an offer of $825,000, conditional on her getting a mortgage approved. Thomas had seen that property prices were rising in Whanganui and was keen to get the best price he could and had been confused about what Sarah was offering and wondered if he should wait and see if he could geta better offer from someone else. After discussions with his salesperson Colin Taylor, however, Thomas had agreed that he should accept Sarah's offer. Colin has prepared a contract of sale that he wants Sarah to sign. but she is hesitant and unsure about the contract's contents and their implications and wants them explained. Referring to the scenario above and answer the following questions: 

a. What is the intention to create legal relations in this scenario, and how is it dem on strated by the parties involved? 

b. Identify the offer and acceptance in this scenario. c. Explain the concept of contractual capacity and how this was evidenced in this scenario.

d. Explain the four elements that would prevent either party giving genuine consent in a contract and explain whether this was or was not evident in this scenario for both Sarah and Thomas. 

e. What is the legality of purpose in this scenario, and why is it significant in a contract?

Answer rating: 100% (QA)

a Intention to Create Legal Relations The intention to create legal relations is demonstrated by the ... View the full answer