University Murdoch University (MU)
Subject Commercial Law

Question 1

Leila loses her gold chain and locket. She is very distressed and places an advertisement in the local newspaper.


Gold locket and chain.

Sentimental value.

A reward of $50 for the return of locket and chain.

Phone 93838125,

1 Titanic Drive.

Julie who has read the advertisement finds the locket and chain on her way home from the park. Realizing it is the lost items she goes directly to Leila’s house and claims the rewards. Leila refuses to say “you should have telephoned first.”

Leila seeks your advice.

  1. Is there a binding contract between Leila and Julie?
  2. Would your answer be different if Julie had not read the advertisement and is then told about the reward by April after she has found and returned the locket and chain?

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Question 2

Adam agreed to buy a 1925 Rolls Royce from Edwin, a dealer in vintage cars. They entered into a contract for the purchase of the car at an agreed price of $500 000. Edwin subsequently refused to go through with the contract having heard on the grapevine that there was an Arabian Sheik on the lookout for one who was prepared to pay up to $700 000 for the race car.

Advice Adam with respect to what remedies are available to him as a result of the breach of contract by Edwin.

Would your advice be different if the motor vehicle was a late model Mercedes Benz?

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