Q No.1 What is the legal status of the statements mady by Jamal?

Regarding the speed of the car: The claim made by Jamal to Samia has no legal status because those claims about the speed of car were a mere puff. Law has no concern with such statements of fantasies or mere thoughts of a person and hence they are not considered as statements which provoke the other party into the contract. According to claim made by jamal to samia that the car travel as fast as a bullet is clearly a statement of fantasy and he makes a point that this car can easily touch 150 km per hour but jamal didnt tell saima if he ever tried to reach that speed limit or provide any supporting evidence. Such statement cannot persuade a reasonable person to the contract and hence they have no legal status. Service history was upto date and genuine: About the genuineness of the service history, jamal claimed that the service history is genuine and authentic and up to date. It was a statement of fact made by him because he himself had gone through that service history. But even then if wrong comes out in it Jamal can be held liable either for misrepresentation or fraud depending on his intentions. Inaccuracy as to the model of the car: Samias real concern was with the model of that car. She told Jamal that the car should not be below then 2001. Jamal gave guarantee to Samia that the car is 2002 model. This was also revealed in the registration book. This statement of Jamal regarding the model of the car was statement of fact because he had given the statement on the basis of that registration book. But later on misrepresentation occurs. The car turns out to be a 2000 model. It was a mistake made by registration department. Saima can sue Jamal for this misrepresentation. (B) Clearly explain the misrepresentation concept including when a representation

becomes a term and finally how it can become a misrep? Ans: Misrepresentation is a contract law concept. It means a false statement of fact made by

one party to another party, which has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods

regarding the quality or nature of the product that the seller has may constitute misrepresentation. There is no intention by any party to deceive another party. The party making the suggestion believes it to be true. e.g. there was also an element of misrepresentation in the contract between Spice v Aprillia. When spice through fax conveyed to aprillia that all of the 5 girls would be included in life time deal with aprillia for promoting his motorcycles but later on one of the girl named Ginger leave the party in between without informing Aprillia. Q No.2 In the above scenario when is the contract formed. You should clearly explain the concepts of offer and acceptance inclusive of rules and case law where relevant. Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. Agreement consists of an offer by an indication of one person (the "offeror") to another (the "offeree") of the offeror's willingness to enter into a contract on certain terms without further negotiations. A contract is said to come into existence when acceptance of an offer (agreement to the terms in it) has been communicated to the offeror by the offeree and there has been consideration bargained-for induced by promises or a promise and performance. If we get back to Jamal and Saima case the contract is formed at the point when Jamal elaborated all the essential facts about the car to Saima and she accepted the offer. Saima gave green signal to jamal offer when Saimas real concern regarding the model of car was addressed. When Jamal satisfied Saima about the model of car by providing her facts Saima gave a positive gesture by buying. Before explaining this fact Saima was not ready to get into contract or was unwilling to consider jamals offer. In case of Jamal and Saima an express offer is made by Jamal to Saima. An offer must be definite and clear. The offer from Jamal to Saima was definite and clear. Moreover it must create legal relations. An offer cannot contain negative conditions. It should not contain cross offers. As far as acceptance is concerned it must be given by offeree. As in Saimas case acceptance had to be made by Saima. An acceptance must be unconditional. It must be in a arranged manner. It must be communicated to the offeror. (Powell v Lee)