Answer all of the following parts: Lam is the owner of a small store selling Jap

Question

Answer all of the following parts: Lam is the owner of a small store selling Japanese traditional chopsticks in Causeway Bay. He placed a notice in front of his shop which reads: 1. "Store for sale, HKS100 million for the shop premises and HK$500,000 for all the chopsticks therein. Can be bought separately" Mak saw the notice in front of the shop. He has a chopsticks shop in Wan Chai and wants to buy all the chopsticks in Lam's store. He approached Lam and gave him a cheque of HKS500,000 telling Lam that he wanted to buy all the chopsticks. But Lam said the notice was wrong and that the price of the chopsticks should be $700,000. Cheung saw the same notice in front of the shop. He was interested in buying the shop premises. Cheung would like to sign a contract with Lam to buy the shop premises REQUIRED (a) Advise Mak whether or not at this stage of the negotiation he has a 20% claim against Lam. (b) Explain to Cheung: (i) what formality would be required for this contract; and (ii) whether this contract was governed by the Sale of Goods Ordinance. 5% 5%

Explanation / Answer

Answer:-

Answer-a:-

There is no contract of Chopsticks sale between Lam and Mak, hence Mak cannot have a say in negotiations regarding notice and wrong price point came forward while doing payment. Mak can negotiate by stating to buy units up to price of HK$500000 that could put Lam in thought process of putting down the price point as he is winding up his operation and all chopsticks are sold in one go.

Answer-b:-

(I) Shop or property commercial title change contract would be required as per HongKong Legislation.

(I) Shop is property hence cannot come under 'Sales of Goods Ordinance'.

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