level 3
PROBLEM
Dave, manager of Excellent Foods (‘EF’) and Ben, manager of Safe Foods (‘SF’) are negotiating transfer of EF’s business to SF. During negotiations, Ben said:
If sales increase by 20% in the next two (2) months, SF will proceed with the transfer arrangements and will be prepared to pay the amount of $90,000.
EF thereafter wrote a letter dated 14/2/2011 to SF stating that the business has been valued at $120,000, and that EF will only proceed with the transfer if SF is prepared to pay that amount. SF did not respond to this letter. Within two (2) months, EF’s sales increase by 25% and Dave forwards the record of sales along with the transfer of business contract to SF. Dave also requests 10% of the transfer price of $120,000 to be paid within 14 days. SF informs EF in writing that it is no longer interested in the transfer.
a. Can EF commence an action for breach of contract against SF? Give reasons.
7.5 marks
b. Assuming the letter dated 14/2/2011 was never written, would EF be able to rely on the doctrine of promissory estoppel? Give reasons.
7.5 marks
2011年04月12日 10点04分
11
level 6
o()^))o 唉, LZ是几年级的啊~出国几年了啊。自己作业都不好好写
2011年04月12日 10点04分
14