business law HW | Truck

Individual Homework
BUS 220: Business Law & Ethics
Guidelines
Semester: Summer 2020
2019-2020
Capacity and Genuine Assent
Homework description:
This assignment is individual and should be submitted on Moodle – A maximum of 500
words (single space).
Students are expected to read the below case and answer the below questions:
The case:
Iwan has made an offer to his colleague Jim to buy his Motorcycle through an email. While
typing the email, Iwan has made a typo mistake: he offered to pay USD 8,000 for the
Motorcycle while he intended to offer to pay (and to write in that email) USD 3,000. Jim has
received the offer with a lot of joy. He immediately answers back Iwan that he accepts his
offer and that he is going to reject all the other offers he had received previously from
different interested people. It is only the next day, as Jim had come to deliver the Motorcycle
and process the purchase that Iwan realizes the mistake made in the email. Iwan has
informed Jim that there was a mistake and that he will not be able to buy the Motorcycle for
USD 8,000 but Jim is saying that they have a legally binding.
Questions:
1- A) Does the mistake made by Iwan affect the contract? Please explain your answer in
detail considering the contract law and more specifically the element of Genuine
Assent. (60 marks)
B) Decide if Iwan and Jim Techno have a legally binding agreement in this case. (10
marks)
2- Iwan is very worried. He is still a freshman (17 years old) and he does not have
enough money to pay the additional USD 5,000. Can Iwan ask for the contract to be
cancelled based on a different legal basis than the Genuine Assent? Please explain.
(30 marks).