On the 4th of February Edward posts a letter offering to sell certain goods to Greg. On the 7th of February Greg receives this letter and accepts the offer by posting his reply that same day. On the 9th of February Greg changes his mind and sends an email to Edward telling him he is not interested in buying the goods, and asked Edward to ignore the letter of the 7th when it arrives.

Greg's letter was delivered to Edward on the 11th.

(a). Advise Edward as to whether he has an agreement with Greg.

Having read Greg's email, Edward sold the goods to Peter for $450 on credit, with full payment to be made on the 28th of February. On the 20th of February Edward hears Peter is in financial trouble and may not be able to pay for the goods on the due date. On the 20th, as soon as he hears this, Edward writes to Peter stating that if he receives immediate payment, he will give him a discount of $50.

Peter writes back to Edward thanking him for his letter and encloses a cheque for $400. Peter received a further letter from Edward containing a receipt stamped 'in full settlement of the account'.

(b) Advise Peter as to whether he may still be held liable for the unpaid $50.

(c) Would there still have been a contract to sell the goods if Edward and Peter were cousins?