The following things happen to Alex the Harley Davidson rider in December 2018:
(a) Alex orally offers to give his Harley Davidson to Freddy. Freddy orally accepts. Is there
a valid contract? Would it make a difference if the promise was in writing and signed
by the parties? Would it make a difference if Freddy agrees to pay $1?
(b) Alex agrees to buy a new Harley Davidson motorbike from Bob’s Bikes for $13,000.
After the contract is signed, he asks Jeff, the sales manager, if they will provide the
first service free of charge. Advise Alex whether he can enforce the promise.
(c) Alex agrees in writing to provide free bike rides at his child’s school fair. However, he
later changes his mind because he has to work on that day. The school is furious and
threatens to sue him. Advise Alex whether the school could sue him.
(d) On 1 December 2010, Alex’s boss promises Alex a bonus of $15,000 after a successful year. Advise Alex whether the promise is binding? What should he do next
year, if the promise is made, to ensure the promise is legally binding?
(e) Alex agrees to sell and Barry agrees to buy his old Harley for $7,000. Barry agrees to
pay on delivery. Is there a valid contract at the time the promises are exchanged?
(f) Alex promises to give his Harley to his nephew Otto “provided you stop smoking, cut
your hair, graduate with a law degree and be nice to your mother”. Otto does all of
those things. Is Alex bound by the promise?