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Ming Restaurant wanted to change some of its furniture. The manager, Lia, contracted Deem Furniture to enquire about the prices of tables and chairs. Deem

Ming Restaurant wanted to change some of its furniture. The manager, Lia, contracted Deem Furniture to enquire about the prices of tables and chairs. Deem Furniture faxed Lia a quotation for a sum of $30,000 based on Lia's selection of models. Upon receiving the fax, Lia called Deem Furniture and bargained the price to $28,000. Deem Furniture replied that it would think about the matter and get back to Lia the next day. The same afternoon, Ming Restaurant's assistant manager, Gabby, obtained a better quotation from Ditty Furniture. The same models of furniture would only cost $25,000. Lia planned to purchase the furniture from Ditty Furniture instead.

a) Explain who the 'offeror' and 'offeree' are in the situation above. (6 marks)

b) Could Lia purchase the furniture from Ditty Furniture? Justify your answer.(6 marks)

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