Task 3

Having just received her tax return, Amanda wants to buy a car. She knows that her friend Maggie wants to sell her old Corolla to buy a Ford Falcon. On Saturday, Amanda goes to Maggie's house and offers her to buy her Corolla for the amount of $ 5,500. Maggie is not sure whether to accept Amanda's offer and she promises Amanda to give an answer the following morning. Before reaching a decision about her old Corolla, Maggie visits the Ford dealer to ask about the Falcon model that she wants to buy. A Ford representative told Maggie that her Corolla's worth was $6,000 and the dealer was ready to accept her old car as down payment for a brand new Falcon. After her meeting with the Ford representative, Maggie called Amanda and told her she was ready to sell her Corolla for the amount of $6,300. Amanda replied that she would pay $6,200 and she would collect the car the following day. When Amanda arrived to Maggie house the following day to collect the car, she found that Amanda had sold it to the Ford dealer for the amount of $ 6,300. Amanda is upset and she comes to you wanting to know whether she had previously formed a contract with Maggie. Please advise Amanda by referring to the relevant principles of common law. In your advice you must clearly identify the offers, counter offers, acceptance and agreement, if there is any, from the communications between Maggie and Amanda.