Mr Choden also collects Colleen McCahon paintings as an investment. He happens to meet his niece, Mere, at an art exhibition. Mere is thinking of selling one of her Colleen McCahon paintings and says to Mr Choden: "I want to sell my painting by Colleen McCahon. I think it must be worth at least $35,000."

Mr Choden says hell think about it and next day Mere gets a message from Mr Choden saying: "I accept your offer to sell your painting for $35,000."

Mere consults a dealer about the painting she wants to sell and then calls another collector Ira who has previously expressed an interest in buying the painting and says: "I'm selling that painting youve always wanted, you know, the Colleen McCahon self-portrait. It's yours for $40,000."

Ira says: "I will pay $35,000."

Mere replies: "I'll have to look for another buyer then."

Later Ira talks to a friend who will lend her the extra $5,000, so Ira quickly rings Mere and says: "I accept your offer to sell the Colleen McCahon painting for $40,000." Mere says nothing.

Mr Choden hears of this and rings Mere to remind her that he has already bought the painting.

QUESTION TWO: (15 marks. 540 words maximum)

Discuss whether any contract has been formed between Mr Choden and Mere and/or Ira and Mere.