Samuel Teo offered to sell his neighbour Mike Tan his two-year-old Mercedes Benz car for $150,000. Mike
Question:
Samuel Teo offered to sell his neighbour Mike Tan his two-year-old Mercedes Benz car for $150,000. Mike said he would need time to consider Samuel’s offer, upon which Samuel gave him two weeks to consider the offer. A week later, Samuel received an offer from another neighbour to buy his car for $170,000. He immediately went to look for Mike to withdraw his offer, but when he went to Mike’s home, his maid told Samuel that Mike was on a business trip and would be back in three days’ time. Samuel told the maid to tell Mike that he had withdrawn the offer to sell him the car. Believing that he had effectively withdrawn his offer from Mike, Samuel sold the car to the other neighbour. When Mike returned to Singapore a few days’ later, the maid told him about Samuel withdrawing his offer. Mike did not believe the maid and immediately went to see Samuel to accept Samuel’s offer and purchase the car. Mike was surprised when Samuel told him that he had sold the car to someone else. He believes the offer was open to him for at least two weeks and that Samuel could not withdraw his offer until the two weeks had expired. Mike is now considering legal action against Samuel for “breach of contract”.
Required: Using your understanding of contract law, explain if Mike has a case against Samuel.