Tom negotiates with Marion for the purchase of three brand new cars which he had seen advertised in the local newspaper for £10,000 each. They are both local car dealers. Consider the legal position of the buyer in relation to English law of contract and the Sale of Goods Act 1979 (as amended) in the following distinct situations: (a) Tom asks Marion to hold-on to the cars for a day or two until he gets a bank loan for the cars. Marion accepts, but when Tom visits Marion’s showroom the following day he is informed that Marion had sold the cars. (b) Tom asks Marion to hold-on to the cars for a day or two until he gets a bank loan for the cars. Marion says that she will keep the cars for three days, but as there are other interested parties for the three cars, she will only do this If Tom paid her £15,000 as a deposit. If after the three days Tom proceeded to buy the three cars his deposit will be subtracted from the total purchase price of £30,000. If, however, Tom did not proceed with the purchase in three days, she will keep the deposit as "compensation" for not selling the cars for three days. They both agree on these terms, and Tom pays £15,000. However, a day later Tom phones Marion to say that he will not proceed with the purchase as he found similar cars cheaper elsewhere. Marion keeps Tom’s deposit (£15,000) and sells the cars to another buyer at the same price (£30,000). (c) Tom buys the three brand-new cars from Marion. Upon delivery and inspection of the three cars, Tom sees that all three have slight scratches on the doors.
Tom negotiates with Marion for the purchase of three brand new cars which he
had seen advertised in the local newspaper for £10,000 each. They are both local
car dealers.
Consider the legal position of the buyer in relation to English law of contract and
the Sale of Goods Act 1979 (as amended) in the following distinct situations:
(a) Tom asks Marion to hold-on to the cars for a day or two until he gets a bank
loan for the cars. Marion accepts, but when Tom visits Marion’s showroom
the following day he is informed that Marion had sold the cars.
(b) Tom asks Marion to hold-on to the cars for a day or two until he gets a bank
loan for the cars. Marion says that she will keep the cars for three days, but
as there are other interested parties for the three cars, she will only do this
If Tom paid her £15,000 as a deposit. If after the three days Tom proceeded
to buy the three cars his deposit will be subtracted from the total purchase
price of £30,000. If, however, Tom did not proceed with the purchase in
three days, she will keep the deposit as "compensation" for not selling the
cars for three days. They both agree on these terms, and Tom pays
£15,000. However, a day later Tom phones Marion to say that he will not
proceed with the purchase as he found similar cars cheaper elsewhere.
Marion keeps Tom’s deposit (£15,000) and sells the cars to another buyer
at the same price (£30,000).
(c) Tom buys the three brand-new cars from Marion. Upon delivery and
inspection of the three cars, Tom sees that all three have slight scratches on
the doors.
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