Reference no: EM131916725

Question 1

Leila loses her gold chain and locket. She is very distressed and places an advertisement in the local newspaper.

Lost!

Gold locket and chain

Sentimental value.

Reward of $50 for return of locket and chain.

Phone 12345678

10 Loyang drive

Julie who has read the advertisement finds the locket and chain on her way home from the park. Realizing it is the lost items she goes directly to Leila's house and claims the rewards. Leila refuses saying "you should have telephoned first."

Leila seeks your advice.

(a) Is there a binding contract between Leila and Julie? Explain.

(b) Would your answer be different if Julie had not read the advertisement and is then told about the reward by April after she has found and returned the locket and chain?

Question 2

Adam agree to buy a 1925 Rolls Royce from Edwin, a dealer in Vintage cars. They entered into a contract from the purchase of car at an agreed price of %500,000.

Edwin subsequently refused to go through with the contract having heard on the grapevine that there was an Arabian sheik in the lookout for one who was prepared to pay up to $700,000 for the rare car.

Advice Adam with respect to what remedies are available to him as a result of the breach of contract by Edwin.

Would you advice be different if the motor vehicle was a late model of Mercedes Benz?