Question 1

Joe wishes to sell his motor scooter. On 1 October, he placed an advertisement in the Straits Times stating the details of the motor scooter, including its age, color, model, and condition. In addition, he also wrote, ‘Special Offer. Only $8,000. The sale price is valid on 15 October only. Tel: 90111111.’ On 5 October, Joe received a telephone call from Meng, who inquired about the motor scooter in the response to the advertisement and asked about the highest offer Joe had received for the motor scooter. Joe replied he received an offer of $6,500 but would not sell it. Meng made an appointment to inspect the motorcycle. After inspecting the scooter, Meng decided he would buy Joe’s motor scooter at his asking price of $8,000. On 12 October, Meng called Joe to let him know of his decision but this time as Joe was not in, Meng left the following voicemail message for him, ‘Joe, I have thought it through, and I am agreeable to your offer price of $8,000. Please call me on my mobile at 98222222 to make arrangements for the payment and transfer of the motor scooter.’ Jeremy now does not want to sell the motor scooter. Required: Advise Meng if there is a binding contract for Joe to sell the car to him (Meng) at $8,000.

Question 2

Comms Pte Ltd (Comms) is an advertising company providing video advertisements to their clients who are in the Food & Beverage industry. Deli Foods Pte Ltd (Deli) is a restaurant selling western cuisine. Deli wanted a video advertisement to promote their restaurant and wanted to engage Comms. Comms are happy to embark on this new business opportunity. However, they needed a confirmation that Deli is financially sound in that they are able to pay the video advertisement costs when the video is completed. Comms wanted Deli’s bank’s confirmation that Deli is in a credible position. Comms wrote to Deli’s Bank, Sort Bank (Sort) seeking confirmation that Deli was a credible entity. Sort did not check their records properly and confuses Deli with another client, Delicious. Sort replies to Comms saying that Deli is credible even though they have not dealt with such sum Comms is charging. Sort included in their response to Comms a clause ‘The information is provided without responsibility and Sort Bank nor any staff of Sort will not be liable for any inaccuracy. Based on this statement Comms proceeded to do the video advertisement for Deli, only to find that after the video was completed, Deli was placed in liquidation by a creditor. Required: Discuss if Comms can recover their losses from Sort Bank.

Question 3

Asia Global (AG) had its general meeting attended by members recently. The members passed two resolutions, each with an 85% majority. The first was that AG should withdraw its offices and manufacturing plants in Sri Lanka given the uncertain economic and political considerations there, and the second to amend the company’s name from ‘Asia Global to South East Asia Global (SEAG) in line with their business being focused in South East Asia. At their next monthly Board Meeting, the Board of Directors voted not to withdraw their manufacturing plants in Sri Lanka. The Board also decided that the members have no authority to change the company’s name. Discuss if the directors can legitimately ignore both resolutions passed by the members at their annual general meeting?