Angel places the following advertisement in the Trading Post newspaper:

Angel places the following advertisement in the Trading Post newspaper:

For Sale

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Motor Car

1998 Honda Accord Sedan

As new condition

$10,000.00

No Offers

Telephone: 8880008

Tran telephones Angel and says he will buy the car and promises to come to Angel’s home with a bank cheque within the hour.

When Tran arrives with the bank cheque to pick up the car, Angel says she has changed her mind and realised that the price was too low. Tran believes he has a contract with Angel.

Advise Tran whether he has an enforceable contract with Angel, outlining the elements necessary to form a valid simple contract.

Question 2 –

Critically analysis the following scenario and advise Belinda whether she has an action against the ferry company for the loss of her car.

Belinda, who resides in Melbourne, decided to take her family to Hobart. Arriving at the ferry (which she has often used before), she is given a ticket on paying her fare and the fare of her three children. On the reverse side is written:

“All vehicles and passengers use this ferry at their own risk”

She does not read these words nor does she see the notice on the ferry itself that has identical wording. Due to negligent navigation by its captain, the ferry collides with an underwater obstruction marked by a warning buoy. The ferry sinks slowly enough for all the passengers and crew to be rescued but the ferry and vehicles on it are lost.