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Define the circumstances under other relevant legislation

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Reference no: EM131650497

FramOnline Pty Ltd was negotiating the sale of beef cattle to a firm called Local Livestock Seller who intended to on-sell the cattle. FramOnline Pty Ltd sent a letter on 1 October to the buyer setting out the number of beef cattle for sale (80 cattle in total) and the price per head ($1,500 per head). They asked the buyer to reply by 14 October to accept this offer.

The buyer Local Livestock Seller sent back a letter dated 4 October requesting to drop the price a bit, if possible, making it $1,200 per head. FramOnline Pty Ltd received the letter on 7 October and replied immediately stating that they cannot do less than $1,400 per head for 80 cattle. Local Livestock Seller did not reply.

On 14 October at the opening of business, the buyer sent a fax, "I accept your offer of 1 October for the sale of beef cattle". The same day FramOnline Pty Ltd faxed back saying, "You are too late. I am just in the process of selling the cattle to another purchaser. Formalities will be completed by tomorrow." The buyer Local Livestock Seller claims that there is a breach of contract.

Advise FramOnline Pty Ltd and justify your response, citing case authority whenever relevant. When answering this question, fully consider the relevant principles, rules and propositions in the Law of Contract. Do not consider any matters that might arise in the circumstances under other relevant legislation.

Reference no: EM131650497

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