Give reasons quoting appropriate case law

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John is a young entrepreneur interested in purchasing a home in the Gold Coast hinterland and converting the home into a lifestyle and wellness centre. In a letter sent by express post to Cassie on 10 February, John states: "are you interested in selling your home? If so, how much do you want for it?" Cassie received the letter on 11 February and by a facsimile to John on the same day replied: "I will sell you my home for $1.5 million with the terms and conditions of sale according to the REIQ real estate contract". Cassie's husband, George initially sent the facsimile to the wrong number. It was received by Jenna not John. George realised his error, resent the fax to John, and immediately telephoned Jenna stating that the facsimile he sent on his wife's behalf was a mistake and to disregard it. The desperation in George's voice piqued Jenna's interest, so much so that after doing some property research, she sent an e-mail to Cassie accepting the terms of Cassie's facsimile on 12 February.

On 14 February, John sent a letter to Cassie stating: "I will purchase your home and the spare block of land that you own next to your home according to the terms of your facsimile dated 11 February". Later that day, John suffered a heart attack. Fearing that he may no longer be able to work again, he sent an e-mail on 17 February from his hospital bed to Cassie, which Cassie read at 4pm on that day, stating that "Due to serious illness, I will not be able to purchase your home". On 16 February Cassie sent a facsimile to Jenna stating that "I confirm receipt of your fax dated 12 February. The home can be purchased by you for $1.6 million according to the REIQ contract provided that you pay a deposit of 10% into my bank account within 7 days. Call me if you have any queries". On 18 February, Jenna decided to pay the $1.6 million for the home and duly deposited $160,000 into Cassie's bank account. On 19 February Cassie received John's letter of 14 February.

Advise Cassie whether there is a binding contract with: (a) John; and/or Jenna

Give reasons quoting appropriate case law.

Reference no: EM131734601

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