5. Student Name:. Date:. Institution:. Question 1. In t

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Student Name:
Date:
Institution:

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Question 1
In this part of the question, the issue arises if the buyer has any potential claim against the seller.
Therefore in the present case, the buyer can bring their claims against the seller for the breach of
contract. The law provides that when a contract has been breached, the other party who has
suffered as a result of such breaches are about to receive compensation from the other party
regarding any loss or damage that was suffered by such party that was the natural result of such a
breach or regarding which the parties were aware of, at the time of breaking the contract, to be
likely result on account of such breach. Therefore in the present case, the seller made an offer to
sell the car for $25,000 cash. However, the buyer explained that in order to purchase the car, the
buyer will have to borrow the money. Therefore, the seller asked the buyer that if he wanted to
purchase the car, he should mail a cheque of $5000 on the same day and the balance can be
treated by 1st November. Accordingly, the buyer mailed a cheque for $5000 to the seller on the
same day itself (Entores Ltd v Miles Far East Corpn., 1955). However, when the buyer called the
seller to pick up the van on 25 October, the seller refused and said that some other person has
offered to pay $25,000 for the van. Under the circumstances, a claim can be initiated by the
buyer against the seller for the breach of contract. The reason is that the buyer had accepted the
offer made by the seller. At the same time, the promise made by the seller to keep the offer open
until 1st. November is supported by the consideration provided by the buyer. This consideration
has been provided by the buyer in the form of the cheque of $5000 that was mailed by the buyer
on the same day. Under these circumstances the promise made by the seller to keep the offer
open is binding. Consequently, the seller was bound to wait until 1st November before accepting
the offer made by any other person. Hence in this case, it can be stated that the buyer can make a
claim against the seller for breach of contract.