QUESTION TWO

Damien needs a new laptop, so he goes to the Laptop shop in the city. The salesperson tells Damien to buy the newest MacBook model as he can store all his work in the cloud rather than on the laptop. Damien is not sure whether it is a good purchase so decides to think about it overnight.

That night Damien goes to dinner with his friend John. Damien asks John whether he thinks the new MacBook model is a good purchase. John tells Damien that his cousin, Sue, wants to sell her MacBook which is the same model. John tells Damien that Sue had posted an advertisement of the MacBook for $1000 on Facebook MarketPlace months ago. She had not yet received a response from anyone.

Damien sends Sue an email I am a friend of your cousin and I am interested in buying your laptop. If it is a good price, I would like to buy it. Looking forward to your response.

Sue replies by email "Fantastic. The laptop is in excellent condition and I will do you a good deal as you know my cousin. I will sell it you for $900.

Damien likes Sues response and emails her straight away, saying "I accept your offer and will buy the laptop for $900".

However before reading Damiens email Sue receives a message from Tamara who offers her $1000 for the laptop. Sue sells the laptop to Tamara for $1000. Tamara pays Sue and picks up the laptop on the same day.

Sue then sends Damien an email saying that she sold the laptop to someone else.

REQUIRED:

Advise Sue as to her contractual obligations to Damien and Tamara in respect of the sale of the laptop.

Please explain fully, using relevant legal authority.

(20 marks)