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contract law, mistake question, please help!

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TSR's new app is coming! Sign up here to try it first >> 17-10-2016
    • Thread Starter

    Hi Guys, I have a contract law exam coming up in 3 days and im stuck doing a practice question, i thought i had gotten the hang of it and now all of a sudden, this question pops up and confuses me, I don't get why the guarantee is relevant to peter or the question and can i still just follow the mistake structure?

    On Saturday, Peter put an advertisement in the local newspaper, offering his Ford Sierra for sale for £2,500 and giving his telephone number. That evening Peter received a telephone call from Bill, who, impersonating the well-known television and stage personality Ronnie Parker, agreed to buy the car. In his assumed voice, Bill said that he would send his chauffeur to collect and pay for the vehicle. On Sunday morning Bill called at Peter’s house, saying he had been sent by Ronnie Parker. Peter handed over the car in exchange for a cheque for £2,500 signed by “ R Parker”.

    Bill then asked Peter to sign a piece of paper which read: “Received of R Parker, a cheque for £2,500”. Peter read this and signed. Just before leaving, Bill handed Peter another piece of paper, saying it was just a copy of the receipt for Parker’s records. Peter signed the document without reading it. It was in fact guarantee to Tom, a tradesman, of Bill’s debts up to £3,500.

    On Monday, Bill sold the car to Doris for £500 and by showing the guarantee, induced Tom to let him have goods on credit to the value of £500.

    Peter has been advised by the bank that the cheque has been dishonoured.

    Advise Peter whether he can recover the vehicle from Doris and whether he is bound by the guarantee.
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