Question
Lady Amity, an eccentric old lady, has now decided to sell one of her hotels to pay for a new roof on her house. She
Lady Amity, an eccentric old lady, has now decided to sell one of her hotels to pay for a new roof on her house. She places the following advertisement in the Times Newspaper:
Exclusive hotel for sale by tender. Terms and envelopes for submission available. All tenders to be received by Midday 1stFebruary.
On 30thJanuary Lady Amity receives two tenders in the prescribed form. When she opens the first tender she sees it is from Brash, the current manager of the hotel, whom Lady Amity employs. She immediately throws it away muttering about"servants not knowing their place thesedays". She is so annoyed that she forgets about the second tender fromClarissa, a well-known chef.
On 5thFebruary Lady Amity receives an email from Devi, a local businesswoman, who says she heard that the hotel was for sale and thatshe "might be interested in buying it for around 1 million"but that she will need to do profitability survey before committing herself. They later agree that for a fee of 1,000 Lady Amity will not offer the hotel to any other party before 1stMarch. Devi pays 25,000 to Enterprise Co to do profitability survey which is very positive. On 18thFebruary Frederik phones Lady Amity while driving his car and offers 11 million for the hotel. Lady Amity says,"Yes, that's a deal"but Frederik does not hear her because of loud road noise. He decides to ring again when he stops for petrol. Lady Amity immediately rings Devi and tells her the hotel has now been sold. While driving Frederik thinks he has offered too much for the hotel. At the next petrol station, he rings Lady Amity and tells her he wants to buy the hotel for 10 million.
Advise Lady Amity.
this question is on offer and acceptance, contract law.
please advise Lady Amity what law should be applied ?
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