QUESTION 1:

Sam is a farmer. On the 15th February this year, he wrote to Alan, the owner of a boutique brewery; "After our meeting last week, I made enquiries and I can confirm that I can sell you 1000 tonnes of A Grade wheat. Are you interested? Price would be $800 per tonne,

delivered cash 60 days. I will keep this offer open for your consideration for one week from today's date. Please let me know by 22nd February by letter addressed to me".

Alan received this letter the following day and on 17th February he wrote to Sam, "I am still interested in your offer, but will find it difficult to pay cash. Could I make payment in four equal monthly instalments".

Sam received this letter on the afternoon 18th February and immediately responded," Sorry. I must have cash. I am selling the wheat to Swan Brewery" This letter was received by Alan on the 20th February. On the 19th February, before receiving Sam's letter, Alan posted a letter to him as follows, " Ignore the last letter. I have arranged a loan. I accept your offer of 15th February. Sam received this letter on the 20th February.

When Alan received the letter of 18th February, he immediately contacted Sam who told him that the wheat had already been sold to Swan Brewery. Alan insists they have a contract.

Advise both Sam and Alan.

QUESTION 2:

Isabel misplaced her laptop computer while at work and posted a reward on the office noticeboard stating that she will pay $200 to anyone who returned the computer to her undamaged. Ian, the office junior, noticed that the computer had carelessly been left in the lift one night after work and, noting the name tag on the inside cover, returned the computer to Isabel on his next shift.

Can Ian claim the $200 reward?