Question 1 (Contract Law)On 1 October, Buyer saw a courier van parked in a carpark with a FOR SALE sign that included a telephone number and a price of “$25,000 cash.” That night, Buyer called Seller. Buyer explained that he would have to borrow the money to purchase the vehicle but could get it next week. Seller provided his address to Buyer and told Buyer, “If you want the van, mail me a cheque for $5000 today. Pay the balance by 1 November.” Later that same day, Buyer mailed Seller a $5000 cheque.The next night, at Buyer’s 18th birthday party, Buyer discussed the deal with Investor. After buying the van, Buyer planned to start a document courier service.Since mailing Seller the $5000 cheque yesterday, Buyer had spent $1200 on business cards, flyers and a mobilephone. Buyer projected a profit of $50,000 in the first year. Investor was impressed with Buyer’s plans and agreed to loan Buyer $20,000 to buy the van.On 25 October, Buyer called Seller to pick up the van. Seller refused and said someone had offered him $35,000 for the van. Seller had not cashed Buyer’s cheque as yet. Seller offered to deposit the cheque and give him the van if Buyer would pay Seller $20,000 now plus $400 a month for 25 months. Buyer laughed and said, “Yeah, right.” But without a van, Buyer would not be able to start his courier service.Answer the following questions in detail, providing reasons for your answers. Refer to relevant case law to support your arguments:1. What are Buyer’s potential claims against Seller? What are Seller’s potential defences? Who is likely to prevail should this case goes to court? (10 marks)2. Assume Buyer prevails in his lawsuit against Seller. What remedy(s) is Buyer likely to receive from the court? (10 marks)(Total marks: 20)Question 2Explain the meaning and implications of the following terms and concepts. In your answers, also identify and describe any legal framework(s) that affect or incorporate them (so, if you were asked to describe bills of exchange, you would define and explain a chose in action, negotiability and the Bills of Exchange Act 1909).a. Chattel Mortgageb. Perfectionc. Fixtured. Torrens – System of registration for land rights and interests.e. Leasehold
