Question
Gary, of Grape King Inc., is a grape grower in Tasmania. He grows a variety of grapes to sell locally, interstate and overseas. He's obsessed
Gary, of Grape King Inc., is a grape grower in Tasmania. He grows a variety of grapes to sell locally, interstate and overseas. He's obsessed with grapes and loves being 'the Grape King'. To improve sales, he has produced a flyer that includes detailed descriptions of all the grape varieties he grows and his terms of supply, as well as some of his favourite images from his Instagram. On 1 August, Gary sends a few flyers to Ava in Melbourne and to Ben in Sydney with a letter stating he is prepared to sell 200 containers of red seedless grapes for $20 per container. In both letters, Gary promises to keep the deal open for 2 weeks, but he soon realizes that the price was too low and that he'd made a major mistake. On 8 August Gary sends a second letter to Ava and to Ben withdrawing his statement. Ava is happy to receive Gary's letter on 7 August and immediately sends Gary an email asking whether he could supply 100 containers of the red seedless grapes and 140 containers of green seedless grapes for the same price. Gary receives Ava's email in his email inbox but does not open or read it. Ben receives Gary's second letter on 20 August but, in the meantime, on 11 August, Ben had sent an email to Gary accepting the offer. On 12 August, he also posted a letter confirming the email, just before finding out that all postal deliveries were soon to be suspended due to a strike. Gary receives Ben's email in his email inbox but does not open or read it. Gary receives Ben's letter on 15 September but ignores it. For the past 12 months, Gary has delivered 10 containers of pinot noir grapes every Friday afternoon to his daughter Claire. This saves Gary paying to keep the grapes in cold storage over the weekend and gives Claire fresh grapes which she is using to make home-made wines to sell in her restaurant. Nothing was committed to writing about this but for one year every Friday morning Claire and Gary have exchanged SMS emojis of grapes, wine and a 'thumbs- up', and, once Gary has delivered the grapes, Claire has given him a bottle of wine. Last Friday, despite similar SMS exchanges, Gary did not end up delivering any grapes to Claire because he had sold them all to an overseas buyer. When Claire called about the usual Friday delivery, Gary said: "Sorry dearest, I had to give the grapes to paying customers; I trust you understand".
Advise Ava, Ben and Claire whether they have any contractual rights against Gary. Address each potential contractual relationship separately. For each potential contract, consider all the requirements for forming a valid contract: agreement, consideration and intention to create legal relations. Marks: 25 (of these 20 marks for content/analysis and 5 marks for clarity/structure)
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