Sam is the sole selling agent for Toyota motor cars in Lesotho. He runs his business under the name of Sam Toyota (Pvt) Ltd (Sam Toyota). On 4 October 2009, Sam placed a large label on the windscreen of one Toyota Corolla indicating its sale price to be R11,000 by mistake, when its real price was R110,000.Thabo noticed the sign on 5 October and recognising what a bargain it was immediately told Sam that he accepted the offer and would take the Toyota for R11,000 then and there. However, Sam refused to sell the car to Thabo saying the labelled price was a mistake and the correct price was R110,000. Thabo told Sam that he could not do this and that he was entitled to buy the car for R11,000 and he would sue him if he still refused. After Thabo left, Sam changed the price on the car to R110,000.A bit later, Edward came to the showroom. He liked the car and was willing to pay R110,000 but told Sam he needed a week’s time to arrange bank finance.On 6 October, David came to the showroom. He liked the car and paid with a bank guaranteed cheque for R110,000, and drove the car away.Required:Analyse the scenario from the perspective of the law of contract, and
(a) Advise Thabo, (5 marks)
