Scenario One

Helen has a business where she buys and sells fine art for clients. She receives an email from Peter, stating that Peter has a painting by Monet for sale. Peter indicates that he will sell the painting for $50,000.

Helen telephones Peter and tells him that she is willing to buy the painting for $30,000. Peter replies that he does not want to sell the painting for less than $40,000. Helen says she will think about it.

Later that same day, a friend of Peter sees the painting and immediately decides that he must buy it. He offers Peter $55,000 for the painting and Peter agrees to sell it to him.

The next day Helen telephones Peter, to advise him that she accepts the offer to buy the painting for the original $50,000 asking price.

Peter tells her that he has sold the painting to someone else. Helen replies "but you made me an offer and I have accepted it". She is very angry and wants to know whether she can sue Peter for breach of contract.