1.Andrew, an art dealer, had an 18^th century painting displayed on his gallery window with a tag for $250,000.

Jane entered Andrew's shop and admired the painting. Andrew and Jane had a long conversation about Jane's collection of art and about the market value of the painting. At the end of the conversation, as Jane was walking out of the door, she said "Would you consider an offer of $200,000?"

The painting stood on display for a further 6 weeks with no real expressions of buyer interest. When Andrew saw Jane admiring the painting in the window of his gallery again, he rushed out to her and said "I've been waiting to see you again Jane. There has been a lot of interest in the painting but I've decided it should go to a genuine art collector like yourself, so it's yours for $200,000."

Jane replies "I'm very keen to have this painting in my collection and $200,000 is a good price. I could pay you $150,000 now and the other $50,000 in a month's time when my house sale is complete."

Jane further states that she had to go to England to attend to some family business and will contact him from London.

Jane then went home and began packing for her journey. Before leaving she telephoned her neighbour Sarah. In the course of their conversation Jane told Sarah of the situation regarding the painting.

The next day Sarah called into Andrew's shop and said "I hear you are willing to sell that painting for $200,000. I will give you the cash now."

Andrew agrees to Sarah's offer and a sale is concluded.

Next day Andrew turns up to his gallery and opens the morning mail and finds a letter from Jane and a cheque for $205,000. The letter stated that the extra $5,000 was to thank Andrew for holding the painting for her.

Advise Andrew of his legal position in relation to these negotiations.