Tracy and Kate are childhood friends and they have been living together at a rental property as housemates for the last 6 years. On 16 May 2020 Tracy placed an advertisement on a community notice board at the local library to sell her bicycle as follows:

Women's electric mountain bike for sale $950.00as new condition!

Please call Tracy on 0430 122 234 if interested

Kate, as a mountain bike enthusiast, was really interested in purchasing the bike when she saw the advertisement and the following conversation took place when Kate called Tracy on 17 May 2020:

Kate: Tracy: Kate: Tracy: Kate:

Tracy:

"Hi Tracy, I saw your advertisement and I cannot believe that you are selling your mountain bike." "I know and I cannot believe I am selling it either since I only bought it 6 months ago."

"How much are you willing to accept?"

"Well I was looking to sell it around $950.00 but the lowest price I can accept is $850.00".

"As you know that my boss has reduced the hours of my part time job so $850.00 is a lot money for me at the moment. How about $700.00?"

"I had been saving for this bike for a very long time and I have only ridden it for a few times before my knee injury. I wouldn't even consider selling it if it was not because I need the money to pay for my knee surgery, $750.00 is the lowest I can accept and please let me know by 5pm today."

By 4pm of the same day Tracy had not heard from Kate, Tracy then sent a message to Kate reads:

"Hi Kate, I thought I'd also give you the bike light worth $180.00 for free if you decide to buy the bike for $750.00 by 5pm today."

Kate was busying at work and she did not have time to check her messages but she managed to call Tracy at 4:30pm and said: "Hi Tracy, I accept your offer and thank you".

Advise Kate whether there is a contract for the sale of the bike? Is Kate entitled to have the bike light for free?