Last month, Oldo attended an antique exhibition, where he saw a rare rosewood rocking chair made in 1825. It was in an excellent condition considering its age. He offered to buy the chair from its owner, Mr Kah Yu, for RM 5,000. Mr Kah Yu agreed to that price and said that it would be delivered to Oldo at his home in one week’s time, when the exhibition ended. Oldo offered to pay him a deposit of RM 500 but Kah Yu refused saying that a deposit was not necessary and that the full purchase price could be paid upon delivery. However, Oldo did not hear from Kah Yu and therefore last week he telephoned Kah Yu to enquire about the delay in delivery. Kah Yu replied that he had made a mistake as to the true value of the rocking chair. He said that the market value of the chair was RM 50,000 and that the price offered by Oldo was too low. Further, he had already sold and delivered the chair to another person, Poh Tong, who had offered RM 55,000 for it.Required:Advise Oldo:
(a) whether Kah Yu can avoid liability for breach of the contract for the sale and purchase of the rocking chair on the ground that the consideration was inadequate; and (5 marks)
