Lucas works as a car salesman at Prime Car Dealers. On 2nd January Goh saw an advertisement of Prime Car Dealers and telephones Lucas and asks if he could trade his Mercedes Benz CLA180. Lucas says that he is happy to accept Goh’s car but he would need to inspect the car before the sale is finalised. Goh visits Lucas the next day and say ‘it is yours for $ 65,000.’ Lucas examines the car and replies ‘I love it but $65,000 is too expensive for Mercedes Benz CLA180’.

Lucas says he will buy the car for $55,000. Goh claims that his car is in a perfect condition and $55,000 is too low for his car. Lucas says he need to speak to his employer before he accepts to buy the car for $65,000. Lucas’s employer agrees to buy the car for $65,000.

On 4th January Lucas sent a text message to Goh stating that he would buy the car for $65,000 and will assume this is acceptable unless Goh tells him otherwise. On 3rd January Goh met his friend Aisyah and he made an offer to sell his car to her for $65,000. On 5th January Goh emailed Aisyah stating that he has found a buyer for his car. However, she replied stating that she agrees to buy Goh’s car for $65,000.

Discuss, incorporating your understanding of contract law, the following:

a. Whether a contract was formed. If so, when was it formed and who were the contracting parties?

b. The various alternative dispute resolution options for the parties to resolve their dispute.

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