1.

On Wednesday oftmark Ltd offers to sell 100 tonnes of steel to Aftercool Ltd at 500 per

tonne. The offer to Aftercool states: "please telephone or email an acceptance by noon today.

Delivery will take place next Monday

Aftercool Ltd faxes an acceptance at 10:00am, the fax machine informing the clerical

assistant that the message has been properly relayed to Oftmark. Unfortunately, the Oftmark

fax machine has not been fitted with a new printing cartridge so the acceptance is not

received. Moreover, as Aftercool Ltd believes that a firm contract exists, it enters into a

binding with Torquecar Ltd to produce car body panels, using the anticipated delivery of steel

on Monday.

Advice Aftercool Ltd whether there is a binding contract with Oftmark Ltd. Would your

advice differ in the following circumstances?

a) Aftercool emailed a withdrawal of its acceptance before noon, but the email was

accidentally deleted by an Oftmark employee.

b) Aftercool telephoned an acceptance to Oftmark in the afternoon.

c) Instead of a telephone acceptance Oftmark's offer had specified: 'please notify us of

your acceptance by first class registered post sent before noon.' Aftercool sent a letter

of acceptance before noon by unregistered post which was never received by Oftmark

Ltd.