Case scenario I: Guards Academy (10 marks)

Guards Academy is a private company which specialises in providing security guard services for large events such as festivals, concerts, and sporting tournaments. Last month (August), the CEO of Guards Academy, Mr Mahoney, started negotiating contracts with two massive events: the 'RainboWombat festival' (represented by Mr Les), and the 'Oz Open's final' (represented by Ms Rebecca).

These two events will be held during the last weekend of January in 2020. However, Guards Academy can commit its services to just one of them, as it does not have enough staff to service more than one event at a time.

Guards Academy's CEO is known within the industry as a wizard for his capacity to secure new clients. Not surprisingly, the two events' representatives quickly became enthusiastic about reaching a contract with Guards Academy. Likewise, Mr Mahoney got a bit carried away with the excitement of negotiating such profitable contracts (worth $200,000 each) that he totally forgets that he can only enter into just one of them.

On the 22ndand 24thAugust, Mr Mahoney receives an email from each of the events' representatives (Oz Open and RainboWombat, respectively). Each of these emails states that the event's representative is happy to have a contract with Guards Academy.

Mr Mahoney phoned the organisers of the events, to politely explain that, from his perspective, there was no contract yet. Nevertheless, he received the same negative response from both representatives: "if you have any concerns with regard to our contract, please contact our lawyers".

This morning Mr Mahoney came into your office seeking your advice. He brought with him a number of emails.

Advise Mr Mahony whether Guards Academy has a valid contract with RainboWombatand / orthe OZ Open's final. (10 marks)

Guards Academy - RainboWombat From: Mahoney To: Les Date: 6 August 2019 Subject: Quote for security service for upcoming RainboWombat festival Dear Les, We would be delighted to be part of Melbourne's greatest musical festival. Please find attached a contract with terms and conditions for our services. The total amount is $200,000. Please sign and return the contract to confirm the deal. Kind regards, Mr Mahoney CEO Guards Academy Guards Academy - RainboWombat From: Les To: Mahoney Date: 8 August 2019 Subject: Quote for security service for upcoming RainboWombat festival Dear Mr Mahoney, Thanks for your email. The quote looks attractive. Could you please give me a month to send a final response? We still have plenty of time to seal this deal. I will give you 8 VIP tickets for the festival, if you have the courtesy to wait for my answer until the 9th of September. Kind regards, Les Guards Academy - RainboWombatGuards Academy - RainboWombat From: Mahoney To: Les Date: 12August 2019 Subject: Quote for security service for upcoming RainboWombat festival Dear Les, Sounds like a plan! Thanks a lot for the tickets. Looking forward to hearing from you soon, M. Guards Academy - Oz Open From: Mahoney To: Rebecca Date: 12 August 2019 Subject: Quote for security service for the OZ Open final Dear Rebecca, As a lover of world class tennis, my company would be proud to be in charge of the security of your patrons and sporting stars Please find attached a contract with the terms and conditions of our services. The total amount is $200,000. Please sign and return the contract to confirm our deal. Kind regards, Mr Mahoney Guards Academy - Oz Open From: Rebecca To: Mahoney To: Mahoney Date: 22 August 2019 Subject: Quote for security service for the OZ Open final Dear Mahoney, We are happy to hire your services. We have sent a signed copy of the contract via courier to your address Can I make payment by personal cheque? Best wishes, Rebecca Guards Academy - RainboWombat From: Mahoney To: Les Date: 23 August 2019 Subject: Revoking offer to RainbowWombat Dear Les, just want to let you know that our offer is not open anymore. Kind regards, M. Finally, without being aware of the last email sent by Mr Mahoney's on 23 August (i.e. the email above), Mr Les sends the following email: Guards Academy - RainboWombat From: Les To: Mahoney Date: 24 August 2019 Subject: Quote for security service for upcoming RainboWombat Festival Dear Mr Mahoney, We accept your offer. Please find attached a signed copy of the contract. Happy to have a contract with you Kind regards, Les