Gary is the President of a club of diehard Pokechi fans which runs events and tournaments based around their favourite video game. Gary wants to galvanise more participation, so on Monday morning he pins the following notice on the club letter board:

'To all official members of the Pokechi Club: I, your President, hereby issue a challenge to find the player who can catch the most number of Pokechi. To the winner I shall award a most coveted collector's figurine, signed by the game designer himself! For the other brave participants there will be a consolation prize of limited edition pins. If you wish to take on this challenge, just begin a new game and bring it to judging on Friday when the winner is to be announced. Happy gaming!'

May, a veteran club member, is highly excited by this challenge. She rushes home to share the news with her brother Max, who is not particularly interested in the game, but jumps at the opportunity to own a valuable figurine. They both begin a new game straight away.

In fact Gary does not yet possess the promised winning prize, but he knows Drew owns such a figurine, and is not averse to selling it at a good price. On Tuesday 9am Gary contacts Drew via email:

'Please inform me lowest price you are willing to accept for figurine.' To which Drew immediately replies via text message:

'$1000 should be acceptable. Call me if you are interested, but be quick because I am taking it to auction this afternoon.'

Gary thinks $1000 is a little expensive, especially since the figurine is not in mint condition. So he replied via email at 10am:

'Could you have it cleaned and repaired before I buy it?'

Drew saw the email, but doesn't reply. At 11am Gary emails Drew again: 'I am willing to purchase your figurine for $1000.'

As it happens Drew's email server is undergoing maintenance from 10:20am for 4 hours, during which time Drew is unable to access his account. It is not until 3pm when Drew texts Gary saying:

'Sorry too late. Already sold at auction.'

Gary feels he has no choice but to cancel the competition and on Thursday, at the weekly club meeting, Gary informs the members that the competition is off. He takes down the challenge notice from the letter board.

May has not been to the club since Monday, having closeted herself indoors playing Pokechi. On Friday, she triumphantly approaches Gary and shows him her game. She demands the prize figurine. Max accepts that May has won the figurine but he wants the consolation pin.

Advise Gary

Preparation:

Cases: Review Pepsico, Carlill v Carbolic Smokeball, Offer and Acceptance in the Electronic Age - Nolan, and ensure you have also reviewed lecture slides to date.

Read Markolm Construction Co Ltd v Wellington City Council.