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Trimester 2 2016
Individual Assignment
Answer ALL questions.
Each question is worth 10 marks.
Total marks for this assignment is 20 marks.
Total weight for this assignment is 20%
Word limit is 2000 words.
Consider the following situations and indicate whether consideration is present and
whether Jack has an enforceable agreement:
a) Jane is going overseas and she offers to give her Lotus Super 7 sports car to
Jack. The market value for this type of vehicle in good condition is around
$25 000. Jack accepts. (2.5 MARKS)
b) Jane offers to sell Jack her Lotus Super 7 sports car for $25 000. The market
value for this type of vehicle in good condition is around $25 000. Jack
accepts. (2.5 MARKS)
c) Jane offers to sell Jack her Lotus Super 7 sports car for $2500. The market
value for this type of vehicle in good condition is around $25 000. Jack
accepts. (5 MARKS)
A shipbuilder had contracted to build a tanker for North Ocean Tankers. The
contract was in US dollars and didn’t contain any provisions for currency
fluctuations. Approximately halfway through construction of the ship, the United
States devalued its currency by 10 per cent. As the shipbuilder stood to make a loss
on the contract, it demanded that an extra US$3 million be paid or it would stop
work. The buyer reluctantly agreed under protest to pay, as he already had a charter
for the tanker and it was essential that it be delivered on time. The buyer didn’t
commence action to recover the excess payment until some nine months after
delivery. Will the buyer succeed in recovering the excess?

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