Stanley & Libra Ltd design cutlery. They design high-quality catering cutlery in a variety of classic and contemporary styles to suit customers’ taste and demand. Usually, they design all sorts of cutlery including knives and forks, steak knives, and soup spoons. Recently they have produced one thousand specialist steak knives and forks.

On 1 November Stanley & Libra Ltd post a note on their website indicating that their specialist steak knife and fork sets are for sale. The post reads as such:

“High quality steak knives and forks are for sale at a price of $1.00 per cutlery. Interested customers are requested to contact us via the mailing address or by making a phone call.”

A mailing address and a phone number have been provided accordingly in that post.

Roger, the owner of the Ribs & Wine Co restaurant in Perth, sees the advertisement. He knows Stanley & Libra Ltd produce stylish and elegant cutlery sets which are durable and versatile, too. So, he writes them on 1 November asking to have five hundred of specialist steak knives and fork at $1.00 per cutlery or one thousand at 50c per cutlery.

Stanley & Libra Ltd receive this letter on 4 November and reply on the same day saying that they will sell one thousand at 70c per cutlery. In fact, they have been receiving many queries regarding this sale. Therefore, in their reply to Roger, they state that he (Roger) should phone them by no later than close of business on Friday 8 November if he (Roger) wants ‘to confirm the contract’.

Roger, after hearing back from Stanley & Libra Ltd, drafts a letter confirming the order for one thousand knives and forks at 70c per cutlery. However, he tries to shop around for a better price from other manufacturers and designers. That causes him a bit delay. He ultimately sends his confirmation letter on 7 November. Stanley & Libra Ltd receive this letter on 10 November.

In the meantime, the owner of the Glenpool Bar and Grill contacts Stanley & Libra Ltd. They want the whole consignment of knives and forks for the launch of their new grill section. On 6 November they purchase one thousand specialist steak knives and forks at $1 per cutlery from Stanley & Libra Ltd by paying cash.

Once the products are sold, Stanley & Libra Ltd contact Roger on 6 November withdrawing their offer. This withdrawal letter reaches Roger on 8 November.

Now answer the following question and in so doing discuss the legal reasoning and authorities to support your answer. Focus on an analysis and application of the principles relating to the law of contract only, and disregard issues from the Australian Consumer Law or any other area of law. Justify your response by citing case authority whenever relevant.

Advise Stanley & Libra Ltd whether an enforceable agreement was formed with Roger prior to making of a contract for the sale of the cutlery sets to the owner of the Glenpool Bar and Grill.

Answer rating: 100% (QA)

STEP 1 1 Introduction 2 The issue 3 The law 4 Application 5 Conclusion 6 References STEP 2 1 Introduction This case study is based on a contract law issue The issue is whether an enforceable agreement ... View the full answer