SECTION B

$1.$ Answer the case study below using the law of contract principles in the answer

booklet provided.

Carol has decided to sell her $2022$ Toyota Corolla and her VW Motor van On July $10$

She wrote to John offering to sell her car for $$3\mathrm{.}5$M$.$ The same day she also wrote to

Margie informing her that she was selling her van for $$3\mathrm{.}5$M$.$ They were both to let her

know by July $30,$ by post if they were interested.

Margie on receiving the letter, responded by posting a letter to Carol on July $15$th stating

that she was willing to buy the car at the stated price of $$3\mathrm{.}5$M$.$ The letter posted by

Margie did not reach Carol.

John also received his letter on July $15$th and immediately responds by phone informing

her that he is willing to pay $$2\mathrm{.}5$mM for the van. Carol told him no$.$ The next day he calls

and agrees to pay $$3\mathrm{.}5$M but Carol told him that she was no longer selling the van. John

is very upset and tells her that she just bought a law suit.

Carol, on the $20$th July decided to sell the van to Simon for $$4$million. Simon decided to

make the payment with $100$lbs of cocaine and $$2$million cash. Carol agreed and Simon

paid the $$2$million cash but Carol is still waiting for the cocaine, as Simon has not handed

this over.

Margie has come for the car on July $15$ with the cheque for the $$3\mathrm{.}5$M but Carol told her

on that day that she is no longer selling the car. Maggie is unhappy and plans to sue her.

Carol told her sister Tamara who she lives with, that she would give her $$50,000\mathrm{.}00$ to

assist with household expenses, however, because of a previous failed investment, she

had no money to give to her. Tamara is upset and is contemplating suing her.

Carol has come to you for advice. Advise Carol

a$.$ Identify the issues arising

b$.$ Discuss the relevant legal principles and cases that support

c$.$ Apply these principles to the case study

d$.$ Advise Carol

$(35$ marks$)$