Question 1 (Learning Outcome Three) 10 Marks Application Question (ILAC) Scenario Mary goes to the Sunday market and sees an exquisite antique tea set collection. She thinks it will be a perfect gift...

Question 1 (Learning Outcome Three) 10 Marks
Application Question (ILAC)
Scenario
Mary goes to the Sunday market and sees an exquisite antique tea set collection. She
thinks it will be a perfect gift for her friend Lily, but is unsure if her friend may already
have this particular set. The tea set owner, Susan, says the tea set is $50. Mary takes
photos of the tea set so she can confirm with her other friends whether Lily already has
this particular tea set. Mary and Susan also exchange email addresses just in case
Mary has further questions.
The next day (Monday), Mary emails Susan and asks where the tea set is from, to
which Susan replies, the tea set was originally from London. Mary then sends a further
email and asks Susan whether she will sell the set for $40, but Susan replies and
maintains the price of $50. That same day Mary confirms with her friends that Lily does
not have the set and that $50 is actually a fair value for the tea set. Mary then emails
Susan on Thursday and tells her she will take the tea set for $50, but there is no
response from Susan.
Mary goes to the Sunday market again that weekend at around 11am to purchase the
tea set. Susan says the tea set had already been sold and that she had emailed Mary
about it. Mary checks her email and sees Susan had sent her an email on Wednesday
evening saying the tea set had already been sold. The email was previously unopened
– Mary must have missed it.
Mary still really wants the tea set for $50.
Question:
Is there a valid contract between Mary and Susan? Cite relevant statute and case
law in your in your answer, using the ILAC method. (


Question 2 (Learning Outcome Three) 10 Marks
Application Question (ILAC)
Scenario
Zoincos Limited is a building company who has contracted with Seaview Properties
Limited to build 5 residential properties around Cockles Bay. Zoincos’ contract specified
for the works to be completed within 18 months, and that each property is to have stone
coated roofing.
Zoincos orders the roofing material from Lagos Roofing Limited and pays $12,000
deposit. According to the terms of the order, Zoincos is to pay the balance of $23,000 to
Lagos Roofing upon delivery.
By September Zoincos had still not received the roofing material from Lagos Roofing.
When queried, it is found that there were issues with the manufacturing and the material
may not arrive until after Christmas.
The director of Zoincos re-inspected the terms of Zoincos’ contract with Seaview
Properties and noticed that if the 5 residential properties were not completed within the
18 months, Zoincos would be subject to penalty interest at 10% per day until completion
of works, which is likely to reduce Zoincos’ profit by over $30,000. By then it was too
late to order the roofing material from anywhere else.
Zoincos therefore offered a bonus payment of $10,000 to Lagos Roofing if they could
deliver the material before mid November. Lagos Roofing agreed and managed in the
end to deliver the material on 10 November, together with an invoice for $33,000.
Zoincos paid $23,000 only and refused to pay anymore.
Question:
Will Lagos Roofing Limited succeed in a claim for $10,000 bonus? Cite relevant
case law in your in your answer, using the ILAC method.
(10 Marks)