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Hemant, a retired legal counsellor, joined the “CDI Spy TECH” institute in July 2019. The individuals from this institute are emphatically opposed to the utilization of advanced innovation. Most of the employees live in the town of Dreketi.
Hemant will move to Dreketi as part of the bargain. Along these lines, he will never again require his vehicle, a multi-year old Toyota Rav4. He puts up an advertisement on the notice board of his nearby newsagent.
It reads as: ‘Available to be purchased’- Toyota Rav4 in amazing condition. Further to it, it says “Will be offered to the individual who sends a hard copy that they wish to get it for $25,000 to the accompanying location: 77 Hutt Street, Dreketi”.
On Sunday evening, Liam, a recently qualified driver, posts a letter expressing that he needs to purchase Hemant’s vehicle on Wednesday morning.
On Monday morning, Jascinta, Hemant’s associate, passes the news agency enroute to work. She sees the commercial and remembered the given location of the seller. Once at work, she sends Hemant an email to the email address that he gave her when they initially met, two years back, expressing that she is happy to pay $25,000 for the vehicle. Hemant never gets the email, since as an individual from the “CDI SPY TECH” institutes are is not allowed to utilize PCs or cell phones.
On Tuesday evening Hemant meets his companion Mirav for dinner, and through the span of the meal, Hemant promises to offer the vehicle to Mike for $24,500.
Required: Advise Hemant as to whether he is contractually bound to Liam, Jascinta and Mirav.
How to Answer: Discuss the essentials elements of a “contract” first to determine if a contract is in place, and then briefly set out the general approach taken by the courts when determining the existence of a potential agreement. Next, work through each of the parties’ claims to a binding contract with Hemant (look at offer and acceptance for each individual) and finally conclude whether Hemant is bound to sell his vehicle to anyone of them.