"An offer, capable of being converted into an agreement by acceptance, must consist of a definite promise to be bound. The offeror must have completed his or her share in the formation of a contract by finally declaring a readiness to undertake an obligation." Briefly state the facts in Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd. Given the description of an "offer " in the quote above, explain how the court in the Boots case decided who had made the offer and also the time at which the offer was made. Question Two A and B enter into negotiations for the sale of A's Porsche car. Each one sends a letter to the other saying: (i) "I am prepared to take seriously if you consider $100,000." Both receive the letters next day. A telephones B saying: (ii) "I have changed my mind. I have been told that the car is worth at least $150,000. Let's go half way and I'll give it to you for $125,000." B replies: (iii) "I really think you have to keep to your offer and give it to me for $100,000, but to avoid any conflict I will offer $110,000." A then asks: (iv) "Would you be prepared to defer delivery till after Christmas?" B gets very angry: (v) "No. That's not what we have been talking. We always assumed that the car is available for delivery immediately. I want it right now." A then says: (vi) "OK, it's yours for $110,000." Briefly explain the legal effect of each of the above communications between A and B. Have they made a contract? If there is a contract, what are its terms