Reference no: EM133811630

QUESTION

On February 3, John enters an appliance store, Electro Bomb Limited (EBL) and sees a large sign which reads, "Today only! Answer all 5 questions correctly, deliver the voucher with your responses to our Customer Service Representative (CSR) and follow our Instacam page and you will receive a 65" Brighty TV for $10,000." John answers all 5 questions correctly. He follows the relevant social media page and hands the voucher to the CSR.

The store owner, Bassy, now advises John that he will need to pay $150,000 for the television because if he sold it for $10,000, he would make a massive loss. Accordingly, he could not be legally forced to comply. He advises that the sign has been there for several weeks and was just intended to attract customers and not seriously meant. Besides he believes that he reserves the right to change his mind whenever he wanted in the best interest of the store.

John starts to argue with Bassy, when he sees his cousin, Jasper who hurls insults at John. Since Jasper's parents' death, John had taken care of Jasper. On Jasper's 18th birthday, he told John that he would not go to university. Jasper planned to move out of the house which John rented to live with a friend, George.

One night, while on their way to a football match, John asked Jasper not to move out because he thought George was "bad news". John also promised to give Jasper $60,000 per month to help with expenses if Jasper went to college. Jasper agrees but looks pensive during the match because he does not want to be a burden any more. John sends him a text message during the 2nd half of the game: Cheer up. $30,000 will be of great help. Going to college is a good decision. It is my pleasure to help my little brother.

Jasper was overjoyed. After 6 years of Jasper pursuing a first degree, John gets married and his wife believes who John should no longer support his cousin who is an adult. John stops paying the sum of $30,000. Jasper is on the verge of being expelled from school for non-payment of fees and he has only 2 semesters left to complete his studies.

John leaves the store embarrassed and notices that one of his car windows has been broken apparently when a signpost in the car park fell and hit the car. There is no security guard in sight but there is a sign near affixed to the wall near his car which reads "All cars parked at owner's risk".

Advise John. With reference to case law, your legal opinion should include a discussion of:

1. Whether there is a valid contract between John and EBL with respect to the television.

2. Whether Jasper is likely to be successful if he sues John for outstanding monthly payments; and.

3. Whether John will likely be successful in obtaining compensation from EBL in respect of damage to his car.