Reference no: EM1326005
David manufactures office equipment. Earlier this year he developed a revolutionary new scanner. On 20th May he wrote to Robert and Jenny, both wholesalers whom he had dealt with previously, asking each of them whether they would be interested in becoming the sole distributor for the scanner. On 22nd May Robert and Jenny each wrote to David independently stating that they were interested in becoming the sole distributor for the scanner and would like further information.
On 24th May David wrote to Robert stating â??I offer you the post of sole distributor of the scanner at a basic 10% commission. If I hear nothing from you by 31st May, I will assume that this is acceptable to you.â?
On receiving Davidâ??s letter Robert immediately posted a letter to David in which he accepted Davidâ??s offer, however he incorrectly addressed the letter and consequently the letter did not arrive until 2nd June.
Meanwhile on 31st May, Jenny, having heard nothing from David since the letter of 20th May, posted a letter to David in which she offered to become Davidâ??s sole distributor for a 5% commission.
David received Jennyâ??s letter on 1st June and immediately posted a letter to her accepting her offer. David then telephoned Robert and told him that the post of sole distributor was no longer available. Robert insists that there is a binding contract to appoint him.
Advise the parties with regard to the law relating to offer and acceptance.