If you bring an Australian Red Ensign Flag, I'll knock 5% off the price.

Shirley sees the ad on Gumtree. She has been considering a change of career.

As her children have all graduated University and moved out of her house, she finds herself wanting to live on the sea.

Also, Shirley inherited an Australian Red Ensign Flag from her father.

Shirley considers the Ad to be a sign from the Universe telling her what to do with her future. She phones Francisco and says she will buy it at that price.

However, when talking to Shirley on the phone, Francisco says he has changed his mind about selling.

Shirley is a bit shocked since the Ad is still posted on Gumtree. She mentions that she has a Red Ensign Flag and was ready to fly it on the fishing vessel.

When Francisco hears this, he reconsiders and mentions that he might be open to selling but that he would charge $120,000 for it IF he decides to sell.

Shirley considers the counter-offer. She then offered $110,000.

She does the calculations and realizes that with the 5% discount, the price would only be $4,500 above the original price listed on the Gumtree Ad.

Francisco says that he would consider the $110,000 offered by Shirley.

A couple of days pass.

Francisco has really been considering the offer by Shirley. He did not agree to the counter-offer right away because he was not completely sure that he wanted to retire from being a commercial fisherman.

As Francisco is considering the counter-offer by Shirley, he receives some bad news.

Magdalena, the wife of Francisco, was driving down Old Belair road when an aggressive driver cut her off and felt her tumbling down the hill.

Magdalena suffered some very serious injuries and had most of her teeth knocked out by the steering column.

A Dentist says that he can reconstruct Magdalena's teeth but that the cost of the surgery and dental implants will be $27,500.

Francisco and Magdalena do not have private medical insurance with dental coverage. So, the cost of the reconstruction of Magdalena's teeth will be an out-of-pocket expense.

Francisco is suddenly in need of lots of cash.

He phones Shirley, saying that he accepts Shirley's offer of $110,000.

However, Shirley says she will purchase the boat if Francisco discounts 15% for the Australian Red Ensign Flag.

Francisco is shocked at the counter-offer and says:

" Fine. I accept but only if the discount is 10% for the Red Ensign. "

Shirley then says:

" Ok. That's ok. Sounds good. I'll stop by on Wednesday. "

She hangs up.

Francisco starts to regret saying no to Shirley's original offer when the phone suddenly rings.

The phone call is from the president of Matilda's Fishing Pty Ltd. He wants to add another fishing vessel to the fleet and offers $120,000 to Francisco.

Francisco is so amazed at his luck. He agrees to meet the president of Matilda's Fishing Pty Ltd on Wednesday.

Francisco and the president of Matilda's Fishing Pty Ltd arrange for the "official contract for purchase" to be executed on Wednesday at 10am.

They schedule the signing of the "Offer for Purchase" on the next day, at 10am.

On Wednesday, Shirley arrives at Francisco's office at the Port Adelaide Wharf at 9:55am with a check for $100,000. However, she has forgotten the Australian Red Ensign Flag.

Francisco is a bit confused. He forgot all about Shirley. As he is about to talk to her, a Mercedes Benz pulls up.

The president of Matilda's Fishing Pty Ltd steps out of the car with an "Offer for Purchase Contract" that is fifteen pages long. He also has a check for $120,000.

Analyzes the Contractual negotiations between Francisco, Shirley and Matilda's Fishing Pty Ltd.

IS THERE A CONTRACT BETWEEN SHIRLEY AND FRANCISCO?

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IS THERE A CONTRACT BETWEEN MATILDA FISHING PTY LTD AND FRANCISCO?

Answer rating: 100% (QA)

Lets analyze the contractual negotiations between Francisco Shirley and Matildas Fishing Pty Ltd Contract between Shirley and Francisco 1 Offer and Ac... View the full answer