Reference no: EM131051692 , Length: 550 Words

Peter owns a construction business. He needs a truck to transport building materials. He contacts Wendy, who owns a fleet of trucks. They have several telephone discussions about a Mercedes Benz 5000 truck that Peter is interested in buying. During one of these discussions, Peter asks Wendy whether the truck has a heavy duty suspension, explaining that he needs to transport bags of concrete to construction projects in rural areas. Wendy says that it does. Peter sends Wendy a letter in which he offers to buy the truck for S 300 000. The letter reaches Wendy on 5 November. She signs the nominated place for acceptance, and puts the acceptance into the post on 7 November. On 8 November, Peter phones Wendy and says "I haven't heard from you and I've had second thoughts, so I am hereby formally revoking my offer to buy the truck". Wendy says "Too late, I'm delivering it today". Later that day, she delivers the truck to Peter's premises. Peter notices that the truck does not have heavy-duty suspension, and refuses to pay for it. Wendy's letter of acceptance reaches Peter only on 10 November. Wendy has now sued Peter for S 300 000.

Advise Peter as to his legal position, examining all relevant legal issues that could arise from these facts.