Explain the relavent points to Australian contract law the following situation has. 

Sam decided to sell some of his collections of garden gnomes. On Saturday 17^th he advertised on Garden Marketplace, an online selling site, listing his collection of Snow White and the Seven Dwarfs (Snow White collection) for $350, and his Donald Duck and girlfriend, Daisy, and his nephews Huey, Dewey and Louie collection (Duck collection) for $340. He left his contact details of a mobile phone and home address.

On Sunday, Fred phoned Sam and said he only wanted to buy Sleepy and Grumpy (from the Snow White collection), and offered to pay $60 each for them and give him Ursula, which Fred knows Sam needs to complete his Little Mermaid collection. Fred was known to Sam as he was a fellow collector and they regularly met at Gnome Conventions. Sam stated he was not interested in breaking either collection, so all or nothing. Fred said he would think about it, but in the meantime would he hold that collection for him for 3 days. Sam said ‘OK, but only 3 days’. Fred then hung up.

Marianne wrote a letter to Sam agreeing to buy the Snow White collection at the specified price. She posted this letter, which was correctly addressed and stamped, on Monday 19^th. This letter was received by Sam on Thursday.

On Monday morning Fred phoned Sam and again said he was only interested in buying the two gnomes, but increased the price to $70 each and Ursula. Sam said he would think about it. He said this because no one else had shown him any interest in that collection.

Later that Monday Timothy turned up Sam’s house and said he was interested in the Duck collection, but he wanted to check on their condition. They were in good condition so Timothy said ‘I will give you $300 for the lot.’ Sam replied by saying he was not negotiating the price. Timothy said he would think about it.

On the Monday evening Frankie phoned Sam and agreed to buy the Duck collection for $300 with delivery to another state included. Sam said he would not negotiate on the price and postage anywhere would have to be extra. Frankie said ‘Fine, your loss’ and hung up.

Later that evening Timothy phoned Sam and said he would pay the full price. He would pick them up the next evening. Sam said ‘I won’t be available on Tuesday evening but can you do Wednesday evening?’ Timothy agreed to collect on Wednesday and pay cash.

Sam phoned Fred on the Thursday before he received his mail, and said ‘Fine, I will sell the two gnomes to you but for $100 each and Ursula.’ Fred said ‘You drive a hard bargain, but OK I agree.’

Soon after this conversation Sam’s mail is delivered and he immediately phones Fred back and said ‘Sorry mate, I cannot break the collection.’

Has Sam sold his two collections, or parts thereof, and if so, to whom? Explain your answer by discussing the essential elements for contract formation with respect to each transaction.