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Contract Law - Legal Problem
Penny is a keen horse rider and has been thinking of participating in competitive equestrian events for a very long time. She started riding when she was 10 years old and has been taking part in social and community riding events for more than a decade. She has also just saved enough money to buy a horse so she can practise riding and enter competitions. On 1 February, she visited a farm in Bangalow to look for a horse to buy from Ron who owns a beautiful Arabian. Penny took the Arabian for a ride and absolutely loved it. Below is the conversation that transpired between them: Penny: Gee, this is a gorgeous horse! I think I'll have it. Would you sell at $8000? Ron: I wouldn't part with it for anything less than $12,000. However, I'm in a good mood today and you can have it for $10,000. Please let me know now or latest in the next day or two. Penny: That's kind of you. Let me think about it and I'll let you know soon. On 3 February, Penny wrote the following letter to Ron and posted it in Newcastle: "Dear Ron, I've thought about your offer of $10,000 to sell your Arabian horse to me and I'm pleased to accept it. I'm also happy to come round in a week's time once I'm able to find a horse float to transport the horse and make payment then. Cheers, Penny." Not having heard from Ron for over a week, on 15 February, Penny decided to check advertisements on Gumtree, the digital website, and spotted a horse sale from the horse-riding school owned by her aunt, Wendy. The advertised horse was one of her favourite ones. She telephoned Aunt Wendy who agreed to sell the horse to her at $6000, subject to a vet check later that day, and delivery in 3 days. Penny was ecstatic and agreed immediately over the telephone to buy it. On the same day on 15 February, Penny received a letter from Ron which he posted in Bangalow on 10 February in which he agreed to sell his Arabian horse to Penny.
Advise Penny.
Your answer should only discuss the principles described in Topics 2-5, as relevant to the above facts.
References x 10 each
Harvard referencing.
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