2. Alan needed money quickly. He owned an original 1886 edition of...

2. Alan needed money quickly. He owned an original 1886 edition of Kidnapped by Robert Louis Stevenson, a book which he advertised in the newspaper for sale for $1000. Cate saw the advertisement. She telephoned Alan, saying that she would buy the book for $1000. Alan, however, replied that he had reconsidered the matter and that he could not sell the book for less than $2000. Cate replied that she would give him $1500. Alan replied that he would only sell the book for $2000 but that he would keep his offer open for seven days. He also said that Cate could fax her acceptance to him if she wanted. The next day Alan sold the book to his friend David because David loved the book so much and because he paid $7000 for it. Two days later Cate decided to purchase the book for Alan‘s price of $2000. She posted her acceptance to Alan. The next day David told Cate that he had bought a copy of Kidnapped from Alan for $7,000. Cate rang Alan to confirm that she had accepted his offer. Later that day Alan received Cate‘s acceptance. Is there a contract between ay of the parties? Explain why using ―IRAC‖.

3. Video case study/problem Watch the video problem titled ‗Video 2: Forming a contract?‘ The script of the video scenario is available at the end of this Unit Guide. Advise Gerrie whether there is a binding contract to buy/sell the car. Give full reasons for your answer.