Question
Offer/ITT/Acceptance - problem question ( UK Jurisdiction) On Sunday, Simon saw an advertisement on Directcars' UK internet web-site which stated: 'For sale three VW Golfs,
Offer/ITT/Acceptance - problem question ( UK Jurisdiction)
On Sunday, Simon saw an advertisement on Directcars' UK internet web-site which stated: 'For sale three VW Golfs, second-hand. 30% off list price - 6,000 each'.
Simon, who thought that he would be able to sell the cars privately at a considerable profit, e-mailed Directcars stating:
"Will buy all 3 cars at 5,500 each. Is payment by credit card acceptable?"
On Monday morning, Directcars replied by e-mail that they would only sell for the advertised price and that payment by credit card would be acceptable.
On Monday afternoon, at 3pm, Simon faxed Directcars that he was willing to accept their original offer and would buy the three cars at 6000 each. When the status report of the fax indicated that the fax had not been properly transmitted, Simon sent an e-mail but at 5pm received an e-mail message which stated that delivery of his message had failed. Simon immediately posted a first class letter to Directcars repeating his order.
During Monday afternoon, Nicholas saw the advertisement on Directcars website and immediately e-mailed Directcars stating that he wanted to buy the two of the three cars. Directcars, not having heard from Simon, sold the two cars to Nicholas that afternoon, and at 6:30pm sent a fax to Simon telling him that only one of the three cars remained for sale.
On Tuesday morning, at 9.45 am Directcars received the letter that Simon had posted the previous day. Simon only read the fax from Directcars when he gets up at 10.00am.
Advise Simon whether he has entered into a binding contract with Directcars, and if so, on what terms.
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