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Commercial Law



Alan is a student of Kaplan Higher Education. He just took unit “Commercial Law” in June 2014 and received a “Credit” Grade for the unit.


Whilst tidying up his book shelves, he decided to sell his textbook “Introduction to Business Law in Singapore”, which was a compulsory textbook used in “Commercial Law”. As he knew of various friends in Kaplan Higher Education, he posted on his Facebook page on 1 Nov 2014,



as follows:- “To all my friends who are students enrolling or are enrolled in Kaplan Higher Education. I am selling my textbook “Introduction to Business Law in Singapore”, together with all the notes I took in class. The notes are written in an exercise book and very useful as I obtained a High Distinction for this unit! The selling price is $200.00. If keen, please pay me by 5 Nov 2014.”


Bernard is a friend on Alan’s Facebook account. He will be taking the “Commercial Law” unit on 23 Nov 2014 and is very keen to purchase the material from Alan. He immediately posted on Alan’s Facebook wall on 2 Nov 2014:-


“I am keen to buy. But can you sell at $150.00?”


Charleen is Alan’s younger sister who is taking her GCE “O” levels this year. She saw Alan’s post and was very keen to read up on Business Law. In the morning of 2 Nov 2014, while Alan was still in bed, she told him that she will buy Alan’s textbook for $200.00. Alan merely smiled. He thought that his sister must be mad to read up on Commercial Law at her age. When Charleen asked if she could pass the money to him on 6 Nov 2014, Alan was thinking about his favourite football team’s performance at last weekend’s match and nodded. He then went back to sleep.


Damien is Bernard’s friend and is a student at Kaplan Higher Education. He is not on Alan’s Facebook account but know who Alan is. He heard about Alan’s offer from Bernard and is keen to buy the material as he wants to do well for the unit. After obtaining Alan’s handphone number from Bernard, he sent Alan an sms:- “Alan, this is Damien.



I am keen to buy your Commercial Law material. Can I pass the money to you in Kaplan Higher Education on 4 Nov 2014?”


On 3 Nov 2014, Alan replied to Bernard’s post on his Facebook wall:-


“Sorry. I am selling at $200.00. In fact, there is an offer already.”


On the night of 3 Nov 2014, after much consideration, Bernard decided to buy Alan’s material. However, he would be going overseas for 3 days and could not meet up with Alan. As such, he put $200.00 cash in an envelope and posted to Alan in the morning of 4 Nov 2014. He then informed Alan to look out for the cash. Alan received the cash at 5:00pm on 5 Nov 2014 when he open the letterbox.”


In the evening of 4 Nov 2014, Damien saw Alan in Kaplan Higher Education. He ran up to him and passed him $200.00 cash and said that it is payment for his COMMERCIAL LAW material. Alan kept the money and informed that he will pass everything to him on 7 Nov 2014.


On 6 Nov 2014, after receiving her pocket money, Charleen left $200.00 on Alan’s table.


On 7 Nov 2014, Alan passed to Bernard his original textbook only. He commented that his notes are written in the textbook. On the same day, he bought the same textbook from a bookshop and passed the textbook, together with his hand-written notes, to Damien.


On 23 Nov 2014, both Bernard and Damien realized that the textbook “Introduction to Business Law in Singapore” was issued free-of-charge by Kaplan Higher Education. They are infuriated.



Discuss, incorporating your understanding of contract law, the following:-


i. Whether a contract was formed. If so, when was it formed and who are the contracting parties.

ii. Bernard’s legal position

iii. Charleen’s legal position

iv. Damien’s legal position

v. The various alternative dispute resolution options available and the pros/ cons with these options

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