MMPA 503: Business Law Worksheet 1: Contract Law

Sandra Ong and Phyllis Ng have a contract for the sale and purchase of a house in Wellington owned by Phyliss. The agreed purchase price is $1.2 million. Pursuant to the agreement, Sandra must pay a deposit of $200,000 once the agreement has been signed and the balance on the 15th of March 2021. Sandra signs the agreement on 10 January 2021 and immediately pays the deposit.
However, on 1 March 2021, Sandra calls Phyliss and tells her that she is unexpectedly short of money, and is unable to pay the full $1,000,000 due on 15 March 2021. She asks Phyliss whether she will accept $850,000.  Phyliss considers this request, and decides that, in the circumstances, she is better off taking $850,000 provided Sandra pays the money immediately. Sandra agrees and pays Phyliss the money the next day.  A week later, Phyliss finds out from a friend that she sold her house for much less than it was worth and demands that Sandra pay her the outstanding $150,000.
Advise Sandra whether she must Phyliss the $150,000. It is recommended that you use the legal problem-solving method for this question. Recommended word count: 400-450 words.
You must submit your worksheet electronically through the  Turnitin link for Worksheet One before 9 am on Tuesday 23rd March 2021. This is due the submission date and time. If you submit your worksheet after this date and time, you will receive a late penalty. You will need to click the integrity declaration in order to submit the assignment. You also will receive an automatic email confirming submission.
You may use footnotes or APA style references in your answer. See below for a guide to using Law style footnotes.* * Also, additional information is shown on the readings folder on Blackboard.
Extensions will only be granted in exceptional circumstances. Any extension application should be directed to Trish Keeper.
A penalty of 5% per day will be applied to late submissions unless an extension has been granted.
Write in complete sentences and maintain a formal note (no slang!) Spelling, punctuation, format and referencing form a component of the mark.
Work should be presented in a readily comprehensible manner. Do not use a tiny font or a font that is difficult to read. Leave a margin on one side of each page for marker’s comments.
**Law references tend to be in footnotes – see your textbook chapters.
Please remember that a case (like legislation) is a primary source of law. This means your footnote should not state where you located the case (for example the textbook). You simply refer to the case itself.  If you quote directly from a book you should also footnote the reference to the book.
Here is a short (fictitious) example:
In Black v Brown[1] the court ruled that all dogs must be kept on a leash when in public. Mary Smith, a well-known vet, cites the leading UK decision Rusty v Lassie[2] as authority for her claim that poodles should not be included in the Black v Brown ruling. However, in Key on Contracts the author says “All kiwi dogs should be kept on a leash”.[3]
[1] [2001] 3 NZLR 47.
[2] (2006) 1 All ER 34 (HL).
[3] J Key, Key on Contracts, (2006, LexisNexis) at 45.

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