20-Aug

Ali calls Michael offering to sell his electric guitar for $2,000. He tells Michael that he will keep the offer open until 25 August.

21-Aug

Ali wishes to revoke the offer but lost Michael's phone number. He does not bother to find out Michael's phone number and instead sells the guitar to Jessica, another interested buyer.

22-Aug

Michael attempts to call Ali to accept the offer but Ali does not answer his phone. He texts Ali instead.23-AugAli reads Michael's message but does not respond - hoping his silence is enough to indicate he no longer wants to sell the guitar to Michael.

24-Aug

Michael confronts Ali and asks why he is ignoring him. Ali tells him the offer is withdrawn and the guitar is sold. Michael tells Ali he should not have sold the guitar as he accepted the offer and he broke his promise. Ali argues he already sold the guitar to Jessica and it's too late.

Does a valid contract exist between Michael and Ali?

Using relevant statute and case law, discuss the consequences of:

• Ali calling Michael on 20 August
• Ali revoking the offer on 21 August
• Michael sending the text message on 22 August
• Ali receiving the text message on 23 August.
• Michael confronting Ali on 24 August

For each of the following, identify the relevant stage of contract formation and explain what statute or case law applies.One of your answers must identify when the contract is created.