Reference no: EM13687663

Question 1-Offer and acceptance
On Friday 10 December the following advertisement is placed in the window of Ann's art gallery: '2 copies of a very rare Blake print-$15,000 each, acceptance to be made face-to-face'. Chas and Dave are very keen to acquire the prints but think that the price is too high. They each offer Ann $12,000 for a copy but she refuses to sell the prints at that price, although she says she will accept $13,500. Moreover she promises she will keep her offer to them open until 12o'clock on the following Monday, 13 December. On the Sunday before the deadline Chas and Dave have to leave the country on business but before they do so each post a letter stating that he agrees to buy one of the prints at the price of $13,500. Both letters arrive on the morning of Tuesday 14 December. In any event Ann had already sold both prints to Eve on Saturday 11 December for a total price of $30,000.

Analyse the above situation from the point of contract law. In particular advise the parties as to their rights and liabilities under contract law.


Question 2-Postal RuleDanny wrote a letter to Kate offering to sell her his car for $60,000 on August 5. Danny stated in his letter that Kate had to reply by August 15 or he might sell the car to someone else.

On receiving the offer on August 8, Kate immediately sent a letter to Danny asking whether he would accept the price in instalments over ten months. Kate received no reply from Danny and she then posted another letter to Danny accepting his offer on August 14. Danny assumed that Kate did not accept the offer and he sold the car to Lily on August 16. Danny finally received Kate's letter of acceptance on August 17.
Advise Danny.

Question 3--Consideration
Sunny made a contract with Mandy selling her his television set for $10,000. When he delivered it to Mandy, he told her that he would accept $8,000 as he had moved to a small apartment and no longer had the necessary space for the television set. Mandy gave Sunny $8,000 and her Snoopy collection valued at $250 in exchange for the promise. One month later, Sunny changed his mind and requested Mandy to pay him the outstanding balance for $2,000.

Advise Sunny of his legal position.