Jack Allen was the proud owner of a painting by Aboriginal artist Nike Ryan that depicted a famous place that is a sacred ground, a battleground and a watering hole and simply called 'The MCG'. On June 1 he placed an advertisement in the West Australian Newspaper putting the painting up for sale at $250,000. On June 2 Peta Kennedy came over to his house to have a look. She said to him: "I like the painting but not the frame it is in. What would you say to removing it and reducing the price of the painting?" Allen said that he would have a think about it. On June 5, Allen wrote to Kennedy. In the letter he said: "I am afraid I cannot change the frame or reduce the price. I want to know by June 15 whether you want it at the original price of $250,000. Please reply by post". At the same time that Allen posted his letter, Kennedy also posted a letter to Allen. In the letter she said that she had had second thoughts about the painting and decided that she would take the painting, frame and all for $250,000. Both parties received their respective letters on June 8. No response to these letters is recorded. On June 10, Kennedy attended an art opening. During the course of the evening, she spoke to a famous art dealer, Brett Kelly, who advised Kennedy that the previous evening he had negotiated and finalised the sale of 'The MCG' on behalf of Jack Allen for $250,000. On hearing this Kennedy immediately returned home and sent another letter to Allen in which she insisted that she had legally bought the painting for $250,000 as stated in her letter to Allen dated June 5. Kennedy reconfirmed that she was indeed buying the painting as stated in her letter to Kennedy dated June 5.

A. Identify the legal consequences of all communications with reference to decided cases and advise Kennedy of his contractual position with Allen.

B. Would your answer be different if Brett Kelly was not an art dealer but just a stranger that Kennedy met at the art opening?