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Sir the below scenario which I posted on 29 Nov:
Alvin runs a business selling expensive cars. Last Monday he mistakenly placed a notice on one car indicating that it was for sale of $5000
when in fact its real price was $25000. Bert later noticed the sign and recognizing what a bargain it was immediately
indicated to Alvin that he accepted the offer and would take the car for the indicated amount. Alvin, however, told bert
that there had been a mistake and that the true price of the car was $25000.. Bert insisted that he was entitled to get
the car at the lower price , and when alvin would not give to him at that price Bert said he would sue Alvin.After Bert had left, Alvin chnaged the price on the car to $25000 and subsequently Cat came in and said she would like
to buy the car, but that she would have to arrange the finance.On tuesday Del came by and offered Alvin the full $25000 cash there and then and Alvin sold it to him.
Sir I asked you on 29 Nov that whether there is a binding contract between Alvin and Cat?
You replied ” Yes, there is a contract with Cat and the fact that Alvin has sold the car to Del means that Alvin will now probably have to find a similar car to sell to Cat for the agreed price”
HOWEVER, in the kaplan kit the answer is cat as follows:
“A promise to keep the offer open is only binding where there is a separate contract to that effect. This is known as option contract , and the offeree must provide additional consideration for the promise to keep the offer open. As Cat did not provide any consideration to form an option contract. Alvin is not bound to wait for her to return and can sell the car to anyone else if he so chooses.”
A previous exam answer on virtually the same question claimed that the undertaking to go and arrange finance was sufficient consideration
Kaplan apparently now disagree
I remember because my original answer was in line with Kaplan’s current answer but the examiner’s answer claimed that consideration was the undertaking to arrange
OK?
You have the Kaplan answer … so why are you testing me?
I am not testing you Sir, I was confirming the solution of this question from you because I thought that as you said that consideration was the undertaking to arrange…, so maybe kaplan have wrote wrong answer, because sometimes it happens na that there are certain answers wrong in kit…. But isn’t that consideration must have some monetary value..Here how undertaking to arrange finance is consideration? How does it have monetary value?
Because the act of arranging finance is not turning round to your accompanying bank manager, posing the question and turning back to say that finance has been arranged
There’s all sorts of annoying meetings to arrange and forms to complete and travel to and from the bank
And all of that is (unfortunately) a pain (not physical, just mental … an interruption of one’s day)
I suggest that you take more easily the Kaplan answers – you appear to be asking for confirmation about so many things but Kaplan are nowhere near as unreliable as your multi-posts would suggest!
Do you realise that, of the last 65 posts on this page, 55 have been from Humai?
That’s an incredible 84.62%
OK?
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