Q1-joe and george are good friendsjoe is a builder and

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Q1-Joe and George are good friends.Joe is a Builder and George is in Underwear. George wants a house built so after a few drinks Joe says, "You get the materials and I will build it for you".George accepts Joe's offer, they shake hands and seal the offer with another round of drinks.When George buys the materials he cannot get Joe to build because Joe is too busy on another contract. What is the legal position?

Q2- George has plans prepared for a house.Joe offers to build the house for $50,000. George agrees to have Joe build, it if he can do it for $45,000.With no further communication Joe builds, and invoices the full $50,000 saying he had never agreed to any subsequent figure.
What is the legal position ?

Q3- Party A advertises a car for sale for $10,000. Party B has a look at the car and says, "Looks OK, but your asking price is too high for me, I'm offering you $8,000."Party A says, "I'll be in touch if I don't get a better price."The next day Party A rings Party B and says, "Your price was the best, I'll take it".Party B says, "Sorry, I bought another car this morning." What is the legal position?

Q4- XYZ Co, who manufactures industrial pump sets, wrote to Mogul Ltd, an oil company, offering to constructan item of plant for $100,000.The offer was made on a form containing XYZ's standard terms of business. One of the terms contained in the document was that the initially agreed contract price might be varied according to the cost and availability of materials.

Mogul replied in a letter dated April 29 containing their standard terms of business, stating that they wished to order the plant.These terms did not include a price variation clause but contained a statement that the order was not valid unless confirmed by return of post.XYZ duly confirmed by a letter dated May 1. This letter was delayed in the post as it bore the wrong address, and did not arrive until May 14.Meanwhile on May 12 Mogul posted a letter to XYZ canceling the order.That letter arrived on May 13. What is the legal position?

Further to question Q4.XYZ ignored the letter of May 12 and pressed on with the construction of the plant.It was completed at a price of $125,000.Mogul refused to take delivery. What is the legal position?

Reference no: EM13382888

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