David decides to sell his 4x4 truck. On Tuesday, he parks it on his drive with a notice on both front and back windscreens stating the following: 'For sale. Excellent condition. Price: £6,500 or near offer (ono). Call at number 38 Chestnut Avenue or telephone number 01447898766 only. The first person to agree the price will get the truck'.

1. On Tuesday at 10.00 am, William sees the truck, but being late for an urgent appointment he telephones David from work at 12.00, and makes an offer of £6,100, which David says he would be considering. William tells David that he would consider the offer accepted unless he hears from David by 8pm that evening, to which David agrees.
2. At 1pm on Tuesday, Doris called at David's house but only met his son John at home and leaves a note to be given to his father David, which reads, "I was here Tuesday 1pm. Please keep the truck for me and I leave a cheque for £6,500. Thanks Doris." John then put this note and the cheque in a drawer in his father's home office.
3. At 2.30pm on Tuesday, Colm drives by and sees the for-sale notice and within few minutes, sent an acceptance letter with a cheque for £6,500 and dropped it in a near-by post box. This letter was delivered by Royal mail on Saturday due to an error in the address.
4. At 4pm on Tuesday, David decides to accept William's offer and posts a letter to him at his business address stating that he agrees to sell on the stated terms. However, because of the lower price offered, he asked if William could pay in cash.
5. At 9.30am on Wednesday, William reads David's acceptance letter and immediately telephones David and left a recorded message saying, 'ignore my earlier offer I sent you, - the deal is off'. David was away on business trip and only returned on Friday to listen to the recorded message.
6. Contract law is very important for all business transactions, and one of the key issues is determining whether an offer has been accepted or not. Traditionally, where parties have agreed that acceptance of an offer can be concluded via post, the contract is deemed to be accepted at the point the letter is properly addressed, stamped, and posted" . 

   Consider the scenarios involving David, William, Doris and Colm, and respond to the requirement above.

Answer rating: 100% (QA)

Analysis of Contract Scenarios 1 Williams Offer William made an offer of 6100 at 1200 pm on Tuesday ... View the full answer