sam advertises his Audi car in a local newspaper. The price is stated as 15,000. He receives a telephone call from carl, who says, "I will give you 13,500 for the car." sam, "You can have it for 14,000". carl asks for time to think about it and Kienda agrees.

The next day he receives a letter from John. The letter reads, "I enclose a cheque for 14,000 in payment for your Audi motor vehicle. If I don't hear from you tomorrow, I will come to collect the car."

Later that day he is visited by Harold, who offers to pay 14,500 in cash. sam accepts the offer. As Harold and sam are exchanging the money for the car keys and logbook, carl arrives and purports to accept Sams offer to sell for 14,000, and John, expecting to collect the car.

a)Explain the rules relating to offer and acceptance in the formation of a contract.

b)Advise sam of his legal position in contract.