May has been contemplating to go overseas and has now decided to leave the country. On the 1^st October, she informed her friends, April and June, by post that she was selling her townhouse for $13.5 m. They were to respond by post on or before the 10^th of October.

April received the letter on the 6^th of October and responded immediately by posting her acceptance, stating that she was willing to pay the full price of $13.5 m for the townhouse, however, the letter posted by April did not reach May.

June called May, telling her that she could only pay $10m. May told her 'No'. Sometime, later, she called May, saying she will pay the $13.5m. May again told her 'no' and hung up the phone.

Both April and June are stating that they have a valid contract with May and are threatening to sue her.

a) Identify three issues arising from the question. (3 marks)

b) Discuss the legal principles and support these with relevant cases. (10 marks)

c) Apply the legal principles to the case. ( 5 marks)

d) Advice and Conclusion. (2 marks)