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On the 10th of March 2009 Moot enterprise Ltd posted an offer to sell 1,000 set of encyclopedias to the Ministry of Education for the price of Rs 1,000,000 and that the offer would remain valid up to 31st of June 2009. On the 20th of March 2009, Mr Luck the Permanent Secretary of the Ministry phoned Moot Enterprise Ltd and asked whether he would be allowed three months credit. The manager of Moot enterprise Ltd replied that payment should not be be made cash on delivery. On the 25th of June Moot enterprise Ltd sold the consignment to a private school. On the 30th of June 2009 Mr Luck wrote to Moot enterprise Ltd and accepted the offer. The letter was received by Moot enterprise Ltd on the 1st of July 2009 and the manager immediately phoned Mr Luck and informed him that the sets of encyclopedias had been sold and similar encyclopedias were not available. Advise the parties as to whether or not a contract has been created.
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‘Although the elegance and comprehensiveness of transactions costs reasoning has provided the internalisation approach with a powerful logic (Rugman, 1981, 1985), it is still defic
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