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: Discuss whether a legally enforceable contract has been formed in each of the following circumstances....

: Discuss whether a legally enforceable contract has been formed in each of the following circumstances. You should refer to relevant case law where applicable. Address only contract law issues.

  1. Phil advertises his car for sale on a popular online marketplace. The advertisement contains a picture of a white car described as a ‘2015 VMW 4x4’. Other information supplied is as follows: Automatic Turbo Petrol $68,500. Pim contacts Phil via the website and indicates she would like to buy the car. Phil replies ‘fantastic’, provides her with his home address and requests she bring a bank cheque for the full asking price. However, when Pim examines the car she is upset to discover that it has high mileage having been driven 250,000 kms. She tells Phil that his advertisement lacked clarity and she no longer wants to buy the car.

Solutions

Expert Solution

With Reference to the Contract law, There is no complete contract between buyer and seller and they are still yet to enter into a contract.

From the above details, Offer is made by Phil in an online marketplace where it contains the image of the car and car number details along with Automatic Turbo Petrol. Pim has shown keen interest in buying and but didnot accept the offer and entered into agreement. Thus according to contract law both the buyer and seller must have the consent in the contract. As in the case the detalied information regarding the car is not furnished in online website with respect to mileage, kms driven, life of the car etc. which resulted in the dissatifaction among the buyer that is Pim. Thus Pim can avoid the contract as there was no acceptance by the buyer. as where the seller Phil has not furnished detailed information in the advertisement as it is not enforceable by law as per the Contract Act.

Thus the contract exists only with the mutual accpetance of the buyer and seller, and there must be an existence of offer, buyer, seller, consideration and acceptance.

ekkarill92 answered 2 years ago
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