problem solving for legal issue

BEFORE PROCEEDING, READ THE FOLLOWING FACTS:

Sportswear World Ltd decides to buy 100 cartons of swimwear from Hi Q Manufacturer Ltd. The document prepared by Sportswear World Ltd contained the following provision: ..subject to the preparation of a formal contract of sale and purchase which shall be acceptable to our solicitors on the above terms and conditions . Hi Q Manufacturer Ltd agrees to sell the goods on the basis of the provision. The transaction fell through.

As the sale did not go through, HI Q Manufacturer Ltd decides to sell its swimwear direct to the public. As a result of wearing the swimwear without first washing it, you have contracted a skin infection as the swimwear contained trace chemicals which had been left in the swimwear during the manufacturing process.

YOU MUST ANSWER BOTH OF THE FOLLOWING QUESTIONS.
EACH QUESTION IS WORTH 10 MARKS.

SUPPORT ALL STATEMENTS OF LAW BY REFERRING TO THE RELEVANT LEGISLATION OR CASE LAW.

Question 1

Is there a legally binding contract between Sportswear World Ltd and Hi Q Manufacturers Ltd?

Question 2

Do you have an action in negligence against Hi Q Manufacturer Ltd?
(you are NOT required to consider the law on implied guarantees under ACL)

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