Question
On Monday, Big Business Ltd. (BB) offers to sell 300 wrist watches to Going Places Ltd. (GP) at 50 per watch. The offer to GP
On Monday, Big Business Ltd. (BB) offers to sell 300 wrist watches to Going Places
Ltd. (GP) at 50 per watch. The offer to GP is sent by fax and includes the following
statement: "Please send an acceptance by 12pm today. Delivery will occur on Wednesday".
GP emails an acceptance at 10am. The email is accidentally deleted by an administrative
assistant at BB before it is passed on to BB's management. Meanwhile, GP enters into a
contract with Next-in-Line Ltd to produce new wristbands that can be sold with the watches.
Advise GP whether there is a binding contract with BB. Would your advice differ in the
following circumstances, and if so, why?
(a) GP telephoned an acceptance to BB on Monday afternoon.
(b) GP faxed an acceptance to BB before Monday 12pm. but the fax machine at
BB failed to print out the fax due to lack of a new printing cartridge.
(c) The offer from BB had stipulated the following statement: "Please send your
acceptance by first class registered post sent before 12pm." GP sent a letter of
acceptance before 12pm but by
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