Assignment task: Imran is thinking of selling his old car to purchase a new one. He informs some friends about his intention to sell his car. Sam, one of Imran's friends, passes this information to Kathy. Kathy knows Imran from their university time and calls Imran on a Saturday to check whether the car is still available. Kathy tells Imran 'I would like to buy your car for $40,000. What do you say?' Imran replies, 'I will give it to you for $50,000." Kathy is happy with the price and tells Imran 'Wonderful. I am happy with the price. Unfortunately, I do not have the money with me now. Can you please wait till Monday so I can withdraw the money from the bank? Imran is happy to wait and tells Kathy he will hold onto the car until Monday afternoon. Kathy comes to Imran's house on Monday morning to find out that Imran has sold the car to Lin on Sunday morning. Lin is Imran's dentist and has been a lifesaver to Imran since he was diagnosed with gum (periodontal) disease six months back. Kathy is furious that Imran broke his promise and tells Imran, 'We had a contract. I want the car. Go get it from Lin.' Imran replies,' I am so sorry, Kathy. I couldn't say no to Lin after all she had done for me.'
Kathy storms out of Imran's house and, on her way home, visits Calm Spa, her favourite place to be when she is feeling down. The receptionist greets Kathy by saying, 'Welcome back. How can I help you today?' Kathy replies, 'I am having such a bad day today. Can I please get the 'Revive' package?' To which the receptionist replies, 'Excellent choice. Please place all your electronic devices in this box.' Kathy places her phone in the box next to the receptionist's desk and pays $145 for the treatment. The receptionist hands over a token which she asks Kathy to bring to get her phone. On the rear of the token are printed conditions exempting Calm Spa from liability for loss or damage to items within the premises. When Kathy returns to collect the phone, she finds it missing from the box. Kathy asks for a replacement for her phone, but Calm Spa refuses, relying on the exemption clause (disclaimer).
Answer the following questions.
Q1. Identify the offer and acceptance (if any) in this scenario between Imran and Kathy. Explain with reference to relevant case law.
Q2. Does Kathy have a valid 'option' here? Why or why not? Explain with reference to relevant case law.
Q3. Did Kathy and Imran intend to create legal relations in this scenario?
Q4. Can Imran challenge the validity of his contract with Lin based on undue influence?
Q5. Do the conditions exempting Calm Spa from liability (the disclaimer) form part of the terms of the contract between Calm Spa and Kathy? Explain with reference to relevant case law.