Using the common law principles of Contract, answer the following question.20 Marks

On 1st October, Rajiv, a UTECH Lecturer who is returning to his native country

to retire sent a letter to Rommel offering to sell him his Porsche Macan for $40m. In Rajiv's

letter to Rommel, he asked that he respond in the course of post by October 10.

On receiving Rajiv's letter on October 4, Rommel immediately called him and stated in his

opinion thePorsche Macan was grossly overpriced and he would not pay a dollar more than

$35m for the vehicle. Rajiv got angry and hung up the phone. Two days later

Rommel posted his letter of acceptance in which he stated that he would pay the $40m.

Rajiv received the letter on the 9th October and called Rommel on the same day and informed him that he would not be selling him the car. Rommel is upset and wants to sue Rajiv as he says that he has accepted Rajiv's offer.

1.Discuss the relevant legal principles and cases that support these principles

2.Apply these principles to the facts above

3.Summarize your advice to Rajiv