Question

Eva, the general manager of a courier business, is on holiday in Kakadu National Park. She ran out of money. She telephones Ahmed, her most experienced and trusted courier. Eva asks Ahmed to sell an old Apple AirBook for at least $500 and deposit the money to Eva’s bank account. The next day, Eva was surprised to find that only $150 was deposited to her account. She telephones Ahmed. Ahmed explains that he sold the Apple AirBook to his best friend and could not “rip him off” by charging $500. Eva is furious.

Advise Ahmed if he is liable for the balance of the money and if so on what grounds? Your answer must refer to relevant agency case law.

Answer 1

Eva had asked Ahmed to sell an old Apple AirBook for at least $500 and specifically mentioned amount the amount.

Ahmed has not entered into a contract/ agreement with Eva for a transaction.Yes, Ahmed did sell the apple air book at less than $500 when Eva specifically said Ahmed to sell an old Apple AirBook for at least $500.

In the given case, Ahmed had breached the promise not the contract since they had not entered into a contract for a transaction.

Therefore, it is not a enforceable contract in the court of law and Ahmed cannot be harressed for a promise which is not legally a contract.