FACTS

Josefa lives in Pacifica - a fictional common law jurisdiction. He owns a Cocoa farm and supplies seeds and cocoa beans to local and overseas Cocoa factories engaged in making cocoa butter, cocoa solids, chocolate liquor and chocolates. He wants to sell 50 bags of excess cocoa beans and so decides to place an advertisement in Saturday's edition of the Daily Post newspaper. The advertisement says "Jo's Cocoa Farm. 50 bags of cocoa seeds for sale for $5,000."

On Monday, Latu writes and posts a letter to Josefa stating "I will buy your 50 bags of cocoa seeds for $5,000 subject to finance by ASB Bank." Josefa replies "No problems." Latu secures loan from ASB Bank and writes back to Josefa.

On Tuesday, Josefa's sister, Mary sees the advertisement and immediately telephones Josefa to inform him that she wishes to purchase all 50 bags for the price stated. As Mary cannot get through to Josefa, she leaves a message on his voicemail. Mary also writes to Josefa stating "I will buy your 50 bags of cocoa seeds."

On Wednesday, Charles also sees the advertisement and immediately telephones Josefa. When Josefa answers, Charles states, "I accept your offer, I will buy all 50 bags for the price stated in your advertisement." Josefa replies, "I have changed my mind - the price is now $7,500." Charles is furious and threatens legal action against Josefa.

On Thursday, Patrick visits Josefa's farm after seeing the advertisement. He states that he is willing to buy all 50 bags and pay the price advertised. Joseph says, "The price is now $7,500." Patrick replies, "I will pay $6,500 and that is all." Josefa states, "I am not sure." Patrick responds, "Look, I will give you until next Friday to decide whether you are willing to sell me the cocoa seeds for $6,500." Patrick leaves his phone contact with Josefa.

On Saturday morning, Josefa decides to write to Patrick and agrees to sell him the cocoa seeds for $6,500. Sunday morning, Patrick changes his mind and telephones Josefa to inform him that he no longer wishes to purchase his cocoa seeds as Popo (another cocoa farmer in Pacifica), is selling 50 bags of cocoa seeds for a much lesser amount. He leaves a voicemail on Joshua's answerphone.