Department of Agribusiness Management

ABM 313 Business Law

Assignment 3 (Due Friday 8th March 2019)

Question 1
On 11 May Andrew wrote to Ben offering to sell him 200 bags of potatoes at MK20,000
per bag. On 13 May, Ben posted a reply accepting Andrew’s offer but adding that if he did
not hear from Andrew, he would assume that the price included delivery to his (Ben’s)
house. The following morning, before Ben’s letter arrived, Andrew heard a rumour that
the price of potatoes was about to slump dramatically. Andrew immediately sent a fax to
Ben, stating that ‘the price includes delivery’.

Ben received Andrew’s fax at 10 am on 14 May, whereupon he immediately posted a letter

confirming his acceptance of Andrew’s terms. Over lunch, however, Ben also heard the
news about a slump in the price of potatoes, whereupon he sent Andrew a text message
stating: ‘decline yr offr of pots’.

The price of potatoes has now fallen to MK14,000 per bag and Ben refuses to accept
delivery of Andrew’s pricey potatoes.

Advise Andrew.

Question 2
While on holiday at the seaside, Robert agrees to take his family to ‘Sengabay Fun Park’.
He pays MK1,000 to park his car on a car park run by the Salima City Council. A notice at
the entrance of the car park, which has been partly obscured by overgrown shrubs, states:
‘Cars parked entirely at owner’s risk’. Robert pays MK7,000 for a family admission ticket
to ‘Fun Park’, which is managed by Carolina Leisure Ltd. The back of the ticket contains
the following clause: ‘The company does not accept liability for death or personal injury
to visitors, howsoever caused.’ Robert and his wife are watching their children on the
‘waltzer’ when a metal bar flies off, injuring Robert and his wife. After receiving hospital
treatment, Robert returns to his car to discover that it has been damaged by a City Council
refuse van.

Advise Robert and his wife.