1. Bally advertised 'Car for sale $10 000.' Mickey brought $10 000 to purchase the car but bally refused. Mickey was very upset, threatening to take Bally to court.
Explain whether a valid contract existed between Bally and Mickey. [4 marks]
2. MOULTON V KERSHAW
Kershaw sent a letter to Moulton stating that his company was authorized to sell salt at a given price and would be pleased and 'would be pleased to receive your order.' Moulton replied saying that they wanted to 2000 barrels. Kershaw then withdrew, saying he could not supply this quantity. Moulton sued.
What do you believe would be the court ruling? Justify your answer. [6 marks]
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1. Bally advertised 'Car for sale $10 000.' Mickey brought $10 000 to purchase the car but bally refused. Mickey was very upset, threatening to take Bally to court.
Explain whether a valid contract existed between Bally and Mickey. [4 marks]
2. MOULTON V KERSHAW
Kershaw sent a letter to Moulton stating that his company was authorized to sell salt at a given price and would be pleased and 'would be pleased to receive your order.' Moulton replied saying that they wanted to 2000 barrels. Kershaw then withdrew, saying he could not supply this quantity. Moulton sued.
What do you believe would be the court ruling? Justify your answer. [6 marks]
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