Linda had 3 bicycles. 2 of them were very expensive ones, and one was an ordinary one that

she used to run her daily chores.

 

Linda was having tea with her friends, May and Jenny, when she told them that she wanted to

sell one of her bicycles off. Linda rode one of her expensive bicycles which was parked

outside the café where the 3 ladies were having tea.

 

May had always wanted a bicycle but never got around to buying one. She was thinking of

buying Linda’s bicycle since she knew that Linda took good care of her belongings. May told

Linda that she would drop by her home the next day and take a look at her bicycle. Linda said

that was fine. May then said that she had to leave for an appointment, and she left the

company.

 

Jenny liked Linda’s bicycle that was parked outside. Jenny asked Linda how much she

wanted for her bicycle. Linda said that she was only looking at about $100, since it was an

old bicycle. Linda was referring to her ordinary bicycle. Jenny smiled and handed Linda

$100, and said that she would pick it up from her home the next day. Jenny thought it was the

bicycle that was parked outside the café.

 

The next day, both May and Jenny went to Linda’s house. Jenny went to remove the

expensive bicycle from its stand. Linda stopped her, saying that she was not selling that one,

and pointed to the ordinary bicycle instead. Jenny became angry and said that Linda had

cheated her of $100. Linda then returned the $100 to Jenny, but she refused to accept it.

Instead, Jenny insisted that Linda must sell her expensive bicycle to her for $100. Linda

became angry as well, and she left the $100 next to Jenny and walked off.

 

Linda then said that Jenny had spoiled her day, and that she did not wish to sell any of her

bicycles anymore. When May offered Jenny $100 for the ordinary bicycle, Linda told her,

“May, just go home.” May is also upset with Linda because she refused to accept her tender

of $100 for the ordinary bicycle.

 

Jenny is very upset and wants your opinion as to whether or not Linda had breached a

contract with her, and whether she was correct to return her the $100 that Jenny had paid her.

 

Please identify whether any contract was formed (300 – 500 words)

(a) At the café? (8 marks)

(b) In Linda’s home? (12 marks)