Question

1. Lim, the well-known restaurateur, is modernising his restaurant and wants to sell the

existing furniture. He places an advert in 'Restaurant Monthly' which states:

'Restaurant furniture for sale. 30 tables and 100 chairs. Used, but in very good

condition. $2,500, or nearest offer.' Lim includes his mobile phone number and his

email address in the advert. Lim's advert is published on Monday.

On Tuesday morning, Lim receives a call from Halima. While they are talking, Lim's

mobile loses reception and the line goes dead. The last thing that Lim hears is Halima

saying: '$2,250. That's my final offer.' On Tuesday afternoon, Antony calls Lim.

After some negotiation, Lim finally says to Antony: 'I'll take $2,000 for the furniture.

If you want to go ahead you must confirm this by first class post. The letter must reach

me by 5pm on Friday.' On Wednesday morning, Antony sends an email to Lim, stating:

'I am still thinking about it. Would you be willing to deliver the furniture to my

premises?' Lim reads the email, but decides to ignore it.

On Wednesday afternoon, Karim visits Lim in his restaurant and says: 'I'll give you

$1,800 for the lot.' Lim replies: '$2,000 and it's yours.' Karim decides not to buy the

furniture. However, Karim's friend, Sufyan, decides that he would be willing to buy

the furniture for $2,000 and calls Lim later that afternoon. When Lim answers the

phone, Sufyan says: 'I hear you are willing to sell the tables and chairs for $2,000. I

accept!' Lim says nothing and hangs up.

On Thursday morning, Gordon telephones and Lim says he will accept $2,000 for the

furniture. Gordon says he will think about it. Lim replies: 'If you want to go ahead you

must confirm this by first class post. The letter must reach me by 5pm on Friday.'

On Thursday afternoon, Antony decides to post a letter to Lim confirming he will buy

the restaurant furniture for $2,000. On the way to the post box, he meets Karim who

informs him that Sufyan phoned Lim on Wednesday afternoon to say that he would buy

the furniture. Antony goes ahead and posts the letter with a first class stamp. On

Thursday evening, the postal sorting office is flooded by a burst pipe. Antony's letter

is destroyed.

At 3am on Friday morning, Gordon sends an email to Lim in which he agrees to buy

the furniture for $2000. Lim does not read Gordon's email until Monday afternoon. On

Friday morning at 11am, Lim decides that he does not want to sell the tables and chairs.

Advise the parties as to any rights which may arise in the law of contract.

2. 'Offer and acceptance, while an apparently simple concept, is in fact quite complex,

and it is often difficult for judges to decide whether particular negotiations in fact

involve either offer or acceptance.'

Discuss whether the statement above accurately describes the development of rules on offer

and acceptance.