Reference no: EM131626480
On 7 March, Brendan sent a letter by express courier to Sydney offering to buy fabric from Steven. At the foot of the letter he added: ‘Please write and return by express courier whether you accept my offer'. The letter was delivered to Steven on March 8, and he wrote accepting the offer. However, instead of giving the letter to the express courier, Steven sent it by post. An express courier letter would have arrived back in Melbourne on 9 March, but the letter of acceptance did not arrive until 12 March. On 15 March, Brendan replied to Steven's letter saying that he had brought his requirements of fabric elsewhere. Steven claimed that there had been a breach of contract. Advise Brendan his legal position.
Jenny receieved a circular from Beauty and the Beast hair Salon advertising massages and manicures for $10. Realisiing that this was an excpeptionally good deal, but not surprised because she knew that they had only just opened and were running a number of good opening specials, she rang and made a booking.
When Jenny arrived at the salon she was told that there had been a mistake on the good price because normally a assage and manicure would have cost $150.
Jenny was furious, as it had taken her 30 minutes to get to the shop by car, and if she had known it would cost $100 she would never have made the booking. Advise Jenny. Would your advice have been any different if Jenny had the massage and manicure before being told that it cost $100? Would she have to pay the full price?
Explain why the rules as to acceptance differ between contracts by post and instantaneous communication.
How can businesses that make offers protect themselves from the risk of loss associated with the rules of offer and acceptance by post?