IT consultant in a multinational corporation, John dabbles in constructing gaming computers, Singapore

Assignment Details:

As a side hobby and in his free time from working as an IT consultant in a multinational corporation, John dabbles in constructing gaming computers for his friends and family. On 11 May, John emailed his friend Fred and offered to sell him a high-end gaming personal computer that John constructed (the “PC”), for the price of $2,500. On receiving the email on 11 May, Fred telephoned John to ask whether he could have some time to think about the offer. John said that for $50 he would leave the offer open until 15 May. Fred agreed to this and immediately transferred $50 to John via the “Paylor!” mobile application, which allows individuals to do fund transfers using their mobile phones. On 12 May, Fred replied to John’s email stating that he agreed to buy the PC at the specified price. John did not know that Fred had sent him this email as John did not check his email inbox. On 13 May, John is approached by his colleague Kent who heard about John’s PC. Kent offered to buy it for $3,000. As this was a more attractive proposition, John accepted Kent’s offer and, without reading Fred’s earlier email, immediately sent an SMS (i.e. mobile text message) to Fred telling him that John had sold the PC to Kent. After reading the SMS (on the sale of the PC to Kent), Fred became very upset with John as Fred thought that they had already agreed on a deal.

(a) Discuss whether there is a valid contract between John and Fred for the sale of the PC. In your answer, you should identify the four (4) key elements of a valid contract and discuss whether they are present. You are also required to refer to the provisions of the Electronic Transactions Act (Cap. 88) where relevant, to support your views. (35 marks)

(b) Fred has come to you for advice on an appropriate alternative dispute resolution that he may undertake with John. Compare and contrast the features of litigation with one (1) other alternative dispute resolution (ADR) based on the facts in this scenario, and conclude with your recommended approach to the resolution of his dispute with John, providing justifications for your recommendation.