FLSB-Topic 3-Discussion questions on contract law

FLSB-Topic 3-Discussion questions on contract law -...

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FLSB - Topic 3 -Contract-Discussion Question s Question 1-Offer and acceptance On Friday 10 December the following advertisement is placed in the window of Ann’s art gallery: ‘2 copies of a very rare Blake print-$15,000 each, acceptance to be made face-to-face ’. Chas and Dave are very keen to acquire the prints but think that the price is too high. They each offer Ann $12,000 for a copy but she refuses to sell the prints at that price, although she says she will accept $13,500. Moreover she promises she will keep her offer to them open until 12o’clock on the following Monday, 13 December. On the Sunday before the deadline Chas and Dave have to leave the country on business but before they do so each post a letter stating that he agrees to buy one of the prints at the price of $13,500. Both letters arrive on the morning of Tuesday 14 December. In any event Ann had already sold both prints to Eve on Saturday 11 December for a total price of $30,000 and Ann immediately called Chas and Dave on Saturday that the offer was no longer valid. Analyse the above situation from the point of contract law. In particular advise the parties as to their rights and liabilities under contract law. Sat Sun Mon Tue Posted – Postal Rule 1.Acceptance to be made face-to-face. Postal Method is NOT within their intention. 2.Ann immediately called Chas and Dave on Saturday that the offer was no longer valid – Valid communication on withdrawal. (Valid if valid communication, withdraw before acceptance.) Conclusion: NO binding contract
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Question 2 -Postal Rule Danny wrote a letter to Kate offering to sell her his car for $60,000 on August 5. Danny stated in his letter that Kate had to reply by August 15 or he might sell the car to someone else. On receiving the offer on August 8, Kate immediately sent a letter to Danny asking whether he would accept the price in instalments over ten months. Kate received no reply from Danny and she then posted another letter to Danny accepting his offer on August 14. Danny assumed that Kate did not accept the offer and he sold the car to Lily on August 16. Danny finally received Kate’s letter of acceptance on August 17. Advise Danny. Asking whether he would accept the price in instalments over ten months – Danny have not stated any payment method, NOT a counter offer, just request for further information form Kate.
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