Identify the legal consequences of all communications

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Reference no: EM133651833

Principles of Business Governance

ASSIGNMENT QUESTION

John, an avid cyclist, decided to sell his high-end road bike. He posted an advertisement online on Wednesday, 20th September, describing the bike's specifications and setting a price of $2,000. Another cycling enthusiast, Emily, saw the advertisement and was interested in purchasing the bike.

Emily contacted John at 12.00 pm on 20th September via the online forum and expressed her interest in buying the bike. Emily asked John if he would consider $1,600 for the bike, and she would pick up the bike in two days. Emily provided her contact information, including her mobile number and email address. Although John wanted $2,000 for the bike, he was moving interstate and was keen to sell his bike. John messaged Emily on her mobile at 2.00 pm on 20th September and said he would take$1,800 for the bike.

At 2.30 pm on the same day, John received another offer for the bike, but this time for $2,200 from a different buyer named Michael. Excited about the higher offer, John agrees to sell the bike to Michael. John tries to call Emily on her phone, but she does not answer. John emailed Emily at 3.00 pm, explaining that he had received a better offer and no longer wanted to sell the bike to her.

At 4.00 pm on 20th September, Emily checked her emails and saw John's email advising that he did not want to sell her the bike. After checking her emails, Emily read the text message on her phone sent at 2.00 pm earlier that day.

Emily is frustrated that John has sold the bike to Michael as she believes she had a valid contract to purchase the bike.

Question: Identify the legal consequences of all communications, based on the principles of offer and acceptance and any potential issues related to instantaneous communication, with reference to decided cases and advise Emily of her contractual position with John.

Reference no: EM133651833

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