Reference no: EM131730879
Ross breeds Persian cats. He has one kitten, Sibyl, left from a recent litter.
On 5 December 2016, Ross emailed Phoebe: ‘I’ll sell Sibyl to you for $2,500. Cash on collection. I’ll leave this proposal open until Friday 16 December. Drop me an email or a letter if you want her. Photo attached.’
On 9 December, Phoebe emailed Ross: ‘Has Sibyl had her inoculations and is she a pedigree cat?’
Ross, concerned that Phoebe might not want Sibyl, decided to look for another buyer. On 10 December, Ross emailed Grace offering to sell Sibyl to her for $2,500, and asking her to reply by post or email.
Phoebe, receiving no reply to her email of 9 December, emailed Ross again on 12 December: ‘Sibyl looks so adorable, I’ll have her anyway. Will bring the money on Friday, 16 December.’ Unfortunately, Ross did not notice this email in his inbox.
On 12 December, Grace posted a letter to Ross reading: ‘I agree to pay $2,500 for Sibyl. I’ll collect her on Friday, 16 December.’ Grace’s letter did not arrive until 19 December.
By 15 December, Ross was concerned that he was not going to sell Sibyl, so he was delighted when Flora rang up and agreed to buy Sibyl for $4,000, with payment in four weekly instalments of $1,000.
Phoebe and Grace both turned up on 16 December to collect Sibyl, and were disappointed to be told she had already been sold.
When Flora made her third payment, she asked if she could be let off the final instalment of $100. Ross refused, but agreed to reduce the payment to $600 if Flora paid it there and then. Flora immediately did so.
After Flora had paid the $600, she asked Ross about Sibyl’s temperament. Ross promised Flora that Sibyl was a reliably good-natured kitten.
A week later, Ross changed his mind about letting Flora off the balance, and asked Flora for the remaining $400.
Shortly after that, Sibyl attacked Flora and scratched her face badly.
Required:
a Explain whether Ross’s email to Phoebe is an offer or an invitation to treat.
b Explain whether an agreement has been reached between Ross and Phoebe for the sale of Sibyl. (12 marks)
c Explain whether Grace has accepted Ross’s offer to sell Sibyl.
d Explain whether:
i part-payment of a debt is good consideration;
ii Flora has to pay the balance of $400 to Ross.
e Explain whether:
i past consideration is good consideration;
ii Flora has provided good consideration for Ross’s promise that Sibyl was a reliably good-natured kitten.