PROBLEM SCENARIO:

Fred had run a very successful plumbing business for 20 years but has now decided to retire. He placed an advertisement in the local paper describing his business for sale at a specified price. Fred only heard from one person, Simon, who said he would only pay half the price Fred had specified. Fred responded by saying the business was no longer for sale.

Fred then wrote three letters to his three main local competitors announcing he was retiring and would sell his business to either one of them who offered him, in writing, the highest price. He also stated he must hear from them, if interested, before 5 pm on Monday 22^nd March. He posted these three letters on Monday 8^th March.

John received his letter on the Thursday 11^th March and telephoned that night to discuss the sale with Fred. The call went through to the messagebank so John left a message saying 'Call me as I am happy to buy your business' and left his name and phone number. Fred called him back on Sunday afternoon and John specified a price at which he would be prepared to buy the business. FRED said he would think about it and get back to him.

Flowfree, a business operated by Mitch, received its letter on the Friday 12^th March. Mitch discussed the matter with his family over the weekend and sent a letter on Monday 15^th March with a stated price to purchase the business. He also said that he was really interested so was prepared to go higher if necessary. In other words, he would meet any price higher than his.

Plumbing Pipes, a business run by Peter and Malcolm in partnership, received its letter also on the Friday 12^th March and posted its reply that same day. Malcolm is married to Fred's only daughter.

Flowfree's letter was delivered to Fred on Wednesday 17^th March, whilst Plumbing Pipes' letter was delivered on Friday 19^th March.

The prices stated showed John's was the highest, then Plumbing Pipes and then Flowfree.

Discuss whether there is a contract between Fred and either Simon, John, Peter and Malcolm (Plumbing Pipes) or Mitch (Flowfree). Discuss all essential elements of a contract, being agreement, intention and consideration. Provide thorough application of key areas of law (concepts and principles) to discuss and address the problem and extensive explanation. (500 word limit).