ALL ANSWERS MUST BE PRESENTED USING PARAGRAPHS, FAILURE TO DO SO WILL RESULT IN A DEDUCTION OF 5 MARKS

On February 1, 2021 Adam wrote to Ben offering to sell him a 'Blue Butterfly' stamp, for $50,000. He promised to keep the offer open until the end of the month. Ben replied to Adam by mail on February 20, 2021 saying: 'I accept your offer provided that the stamp is authenticated by a recognized an 'independent expert'.

On February 23, 2021 Adam wrote to Charlie offering to sell him his 'Blue Butterfly' stamp for $70,000. On the same day (and ignorant of Adam's offer) Charlie wrote to Adam offering him $70,000 for the 'Blue Butterfly' stamp.

On February 29, 2021 David telephoned Adam and left a message on Adam's answering machine, offering $100,000 for the 'Blue Butterfly' stamp provided that Adam accepted before the end of the month. Adam heard the message on February 30, 2021. He telephoned David's office at once. There was no reply so he left a message on the answering machine accepting David's offer. David did not hear the message until after he returned from a foreign visit on March 4, 2021.

Instructions

You must take each matter as it presents itself, and decide what the outcome would be for each of the parties. You need to state reason(s) for your answer rather than giving yes or no answers]

1. The precise nature of the communication sent by Adam to Ben, and whether communication of acceptance is required (2 marks)
2. Whether Ben has entered into a binding contract with Adam (2 marks)
3. Whether Adam is bound to keep the offer open until the end of the month? (2 marks)
4. Whether Adam and Charlie have entered into a binding agreement (2 marks)
5. Whether Adam and David have entered into a binding agreement (2 marks)