There are 5 questions. All questions are compulsory.
Question One –(20 marks)
Chan owned a large parcel of undeveloped land (“Farmland”). On 9 August 2014, he offered it to Bronx for $8,000 an acre. Both men signed the following paper:
Chan hereby offers to sell Farmland to Bronx for $8,000 an acre, cash. Dated: 9 August 2014.
Bronx considered the deal for two days. On August 11, 2014, he again met with Chan. Bronx wanted assurance Chan would not sell to someone else if Bronx went out to look at Farmland. After a long discussion, Chan gave Bronx a memorandum signed by him stating:
If Bronx will look at Farmland, I’ll keep the offer open until he’s had awhile to think about it.
Bronx replied: “Okay. I will examine Farmland.”
On 11 August 2014, Bronx took the 100-km round trip to Farmland and inspected it.
On 12 August, he made arrangements to borrow the money to buy Farmland.
On 14 August, Bronx was on his way to Chan’s home to tell him that he accepted the offer when he met Chan’s brother. The brother told Bronx that on August 13, Chan had discovered gold on Farmland, so Chan probably wouldn’t be interested in selling it now. The next day, Bronx sent Chan a letter (received by Chan on August 17) stating:
I accept your offer to sell Farmland for $8,000 an acre.
Chan dispatched a messenger to Bronx when he received the letter, and the messenger told Bronx that he wasn’t going to let him “snap up” the deal now.
Discuss Bronx’s rights against Chan.
Commence looking at whether there is a contract and take it from there.