Is there a valid contract between matilda and sandy

Assignment Help Business Law and Ethics

Reference no: EM133314931

Case: Now her children had reached school age, Matilda decided to sell all their baby gear. She put the following announcement on the local shopping centre noticeboard:

Baby clothes, baby furniture, toys and so much more. Garage sale at x on Saturday 7th January starting at 9 am until all sold. Only selling to those who turn up in person on Saturday.

Items include: bassinette, cot, stroller, baby clothes (range of sizes from 000 through to 4 for both girls and boys), baby capsule, car seats, assortment of toys, children's table and chairs, and a pink wardrobe.

Sandy, a friend of Matilda's, phoned on Thursday night and said: 'I hear you are selling your daughter's pink wardrobe. I would love to buy it. How much do you want?'

Matilda said she had put a price of $50 on it. Sandy said if I collect it before Saturday would you sell it to me for $40? Matilda said: 'Great, come over by 6 pm and you can have it for $45.' Sandy and her husband came and collected the wardrobe before 6 pm on Friday.

On the Saturday, Matilda had quite a few shoppers and sold lots of items within the first hour. By 11 am there were only small items left. Matilda decided she would close up the sale and just donate the remaining contents to a charity. As she was packing up, Henrietta arrived. She said she wanted to buy the baby capsule, the bassinette and the wardrobe. Matilda said, quite proudly, they had already been sold including the wardrobe yesterday. Henrietta was quite annoyed and pointed out that her announcement said she would not sell early ('Only selling to those who turn up in person on Saturday'). She said: 'This is grossly unfair. I have spent money on petrol to get here, and wasted my time. I demand that you compensate me for my expenses.' Matilda replied: 'You are just too late and I am closed so good day. Please leave my property.'

Question 1: Is there a valid contract between Matilda and Sandy? In your answer discuss every transaction between these parties, and comment upon their legal significance. Make sure you discuss whether an agreement was formed and assuming it was whether it would be supported by the necessary intention and consideration.

Question 2: Does Henrietta have a good legal argument to obtain compensation from Matilda for her expenses?

Reference no: EM133314931

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