- May 22, 2020 at 5:17 am
On Sunday, 1st July 2019, A heard from his friend named N, that T, a former colleague wishes to sell his nursery business called “Chip n Munk” for 2 million. A visits the nursery and seems to be interested to purchase nursery business. T wrote a letter of offer to A on 10th July 2019 stating that “if A agrees with the offer and responds through a letter within a week, the business will be sold to him.” However, A replies and says that “he can only afford it if he could pay for it in four installments”. T does not respond. Later that day, T receives a message on Facebook from his friend, S, saying “I heard you are selling your nursery. I would like to buy it for 1.9 million.” On 16th July 2019, A sends a letter by Pos services to T accepting T offer and in the letter, he enclosed a cheque for the sum of 2 million. On the same day, T replies S message on Facebook accepting S offer and giving him instructions on the payment details. On Sunday, 17th July 2019, A heard from a mutual friend that T had sold his nursery business to S. On Monday morning of 18th July 2019, A approaches T at his nursery and asks T if he has received his letter to which T replied that he had not. T also informed A that he had sold the nursery to S for 1.9 million. A was disappointed and very furious. On returning home that evening, T finds A’s letter in his room. His wife informed him that it came by courier that afternoon. Advise A on the two matters below:
i) whether he has any action against Theodore for breach of contract;
ii) whether Theodore could revoke his acceptance.May 22, 2020 at 7:26 am
No, a request for instalment facility is not a counter-offer
OK?May 22, 2020 at 8:43 am
Okay, thank you.
Another quick question, In this situation T have a contract with A because the offer is still on and he have actions against the breach of contract right? In the meantime, he also can’t revoke the acceptance made with S.May 22, 2020 at 5:33 pm
Agreed, and agreed
OK?May 26, 2020 at 2:16 am
For this situation, both A and T have a binding contract, T has an action against a breach of contract. And T can’t revoke his offer with A after acceptance is made, because acceptance is made when the letter of acceptance is posted out due to poster rule. So A could bring to court and have a high chance to win this case.
Am I right?May 26, 2020 at 5:08 pm
Are you in the same group as Xuan? Xuan has posted the exact same question!
I suggest that you get together and discuss what you believe the answer to be and then post on this forum and, at that stage, I’ll tell you if I agree
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