Facts

Gani owns and operates a Copra factory on Pepsi Island in Pasifika. He wants to sell one tonne of excess copra that he has not been able to export and places an advertisement in the Daily Post newspaper, which is published on Tuesday 3rd March 2023. The advertisement says "Gani Co-operative Copra Ltd. One tonne of Copra for sale for $10,000 or a reasonable price. Please respond by post". The advertisement is read in the newspaper on Wednesday 4 th March 2023 by Memhet, Chacsi, and Gani's brother Hodja. Memhet writes and posts a letter to Gani on Wednesday 4 th March 2023 stating "I will buy your one tonne of copra for $9,000". Chacsi writes and posts a letter to Gani on Thursday 5th March 2023 stating "I will buy your one tonne of copra for $10,000". Hodja writes and posts a letter to Gani on Friday 6th March 2023 stating that "I would like to buy your one tonne of copra for $12,000". Gani receives the letters but then decides to sell the one tonne of copra to his Turkish distribution agent Bandar Pasha, for $15,000. When Memhet, Chacsi, and Hodja hear about this one week later they are very angry and seek legal advice.

Part (a) Advise Memhet, Chacsi, and Hodja as to whether they have binding contracts with Gani or not. Part (b) How would your answer to Part (a) change if: Instead of selling the copra to Bandar Pasha for $15,000 in Part (a), Gani writes letters back to Memhet, Chacsi, and Hodja, which they all receive on 16 March 2023 stating that "Since the price of copra has increased since last week, I will now sell the one tonne of copra for $16,000". Memhet writes and posts a letter to Gani on 17 March 2023 stating "I will buy your one tonne of copra for $12,000". Chacsi writes and posts a letter to Gani on 18 March 2023 stating "I will buy your one tonne of Copra for $16,000 and if I do not hear from you by Wednesday 25 March 2023 I will assume that the copra will be delivered to my offices at Chacsi Export Agencies on Thursday 26 March 2023 on those terms". Hodja writes and posts a letter to Gani on 19 March 2023 stating that "I will buy your one tonne of copra for $15,000". Gani writes back to Hodja and sells the copra to Hodja for $15,000. Memhet and Chacsi hear about this one week later they are very angry and seek legal advice. Advise the parties. Part (c) How would your answer to Part (b) change if: Before Gani receives Memhet's, Chacsi's, and Hodja's letters in part (b), Gani posts letters on 17 March 2023 to Memhet, Chacsi and Hodja stating that "Referring to my previous letter where I said I would sell the one tonne of copra for $16,000, please be informed that I have now changed my mind and that I will now be keeping the copra for my coconut oil production". Memhet Chacsi and Hodja receive these letters from Gani on 20 March 2023. Advise the parties. Part (d) How would your answer to Part (c) change if: Before delivery of the one tonne of copra to Hodja in Part (c), Gani receives a written proposal from his Albanian Weslat Kemal to buy the one tonne of copra for $20,000. Gani tells his brother Hodja that he will now sell the one tonne of copra to Weslat. However, Hodja had already entered into contracts with the retailers for Hodja to supply them with copra from Gani's delivery and will not be able to source copra from another supplier in time to meet his obligations with his retailers. Gani wants to break the sale with Hodja and Hodja wants to enforce the sale with Gani. Advise the parties. Part (e) How would your answer change if: Gani advertised in the daily newspaper as follows: - "Gani Co-operative Copra Ltd. One tonne of Copra is for sale for $10,000 or at a reasonable price. If interested, please deposit an initial payment of $5,000 into the general business account of Gani Cooperative Copra Ltd at the Pepsi branch of Westpac Bank by 5pm Friday 6 March 2023". Hodja writes and posts a letter to Gani on Wednesday 5 th March 2023 stating "I will buy your one tonne of copra for $9,000". Chacsi writes and posts a letter to Gani on Thursday 5th March 2023 stating to buy the copra at $10,000. Memhet writes to Ghani agreeing to buy the copra for $10,000 and deposits $5,000 into the general business account of Gani Co-operative Copra Ltd at the Pepsi branch of Westpac Bank by 2 pm on Friday 6 March 2023. Part (f) How would your answer change if: Gani sells to Hodja one tonne of excess copra for $8,000 in exchange for Hodja providing Gani with free use of Hodja's delivery truck for two months. After Ghani delivers the copra, Hodja pays Gani the purchase price and asks if the copra is good for coconut soap production and Gani says it is. Hodja later found out that the copra was not suitable for coconut soap production. Further, Gani realises that the value of the one-tonne copra was $10,000 and not $8,000 and tries to revoke the contract on the basis that what Gani received was not market value for the copra. Part (g) How would your answer change if: Hodja purchased one tonne of copra from Gani for $10,000. Hodja pays $5,000 on 6th March, the day of the delivery, and agrees to pay the remaining balance by 30th March. On 20th March, Hodja runs into financial difficulties in his business and realises that he will not be able to pay the balance of $5,000 to Gani. He approaches Gani and offers to transfer the title to his truck to Gani in exchange for the full amount of the debt. Gani agrees to accept the title of the truck but one week later Gani decides to obtain the remaining balance of $5,000 from Hodja.