PVL 3702 ASSIGNMENT 2

Question 1- 2 Y and Z reach an agreement that should Y sell his leather couch, he (Y) will offer to sell it to Z first, before making an offer to sell the couch to any other person. Which statement is CORRECT? 1 Y and Z concluded an option contract. 2 Y and Z concluded a pre-emption contract. 3 Y and Z concluded neither an option contract nor a pre-emption contract. 4 Y and Z concluded an option contract and a pre-emption contract. 5 Y and Z concluded a contract subject to a resolutive condition. (1) Question 2 - 5 X sells his shop (a business) in a shopping mall to Y. During the negotiations X informs Y of the overhead costs of running the shop but fails to mention that the rental for the shop space is soon to escalate dramatically. In fact, the rent will be so high that the shop will scarcely be able to turn a profit. What cause of action will Y be able to rely on in the circumstances in order to claim damages? 1 Breach of contract. 2 Unjustified enrichment. 3 The reliance theory. 4 Material mistake. 5 Culpable misrep