Mrs. Turner has decided to start her own business running a private day nursery. It is
 necessary for her to find appropriate premises. She sees a detached house, which would be appropriate, on the market for $200,000. After having viewed the property she decides to make a bid for the property for $150,000. The sellers state clearly however that they will only accept $180,000. 

Mrs. Turner then sees another property on the market for $250,000. She offers the asking price for this and it is accepted ‘subject to contract.’ 

However a week later the sellers of the first property contact Mrs. Turner again stating that they have reconsidered are now happy to accept her bid for $150,000.

Your supervisor has requested that you research the relevant issues and compile a report for her attention which, outlines your findings.


Mrs. Turner has now purchased a suitable property and is now purchasing the necessary items required to run her nursery. She looks on a website and sees cots and high chairs advertised for sale by a company named Babies R Us, on the 1st October 2003, requesting twenty cots and twenty high chairs, requesting a reply by the 21st November 2003. 

She received a reply by post, confirming the order, on the 1st December 2003. This was postmarked 20th November. However on the 30th November, Mrs. Turner had assumed that Babies R Us were unlikely to reply and therefore, entered into a contract with a rival company. 

Mrs. Turner has made an appointment to see you to gain advice relating to the above problem. 
Equally, she would appreciate some advice relating to the formation of contracts by e-mail.


Mrs. Turner’s nursery has now opened and has recruited well. She is concerned as to the
different types of liabilities, which she may be affected by during the course of her business and would appreciate it if you could write to her regarding this. 

Explain the different types of liabilities and along with examples.


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