Discuss why contracts are important in business and society today.
On Monday, Mark placed an advertisement in a local newspaper to sell his car:
‘Ford Flavia, 3 years old, super family hatchback, excellent condition, 1.2 diesel engine, 25,000
miles, only 5,500 – payable in cash.’
He also included the details of his home address and telephone number in the advertisement.
On Tuesday, after seeing the advertisement, Jessica visited Mark and expressed her willingness to purchase the car. However she was only willing to pay 5,000 in cash. Mark refused to accept the deal.
On the same day, Sally posted a letter to Mark, indicating her desire to buy the car as advertised and stating that she would, in person, pay Mark 5,500 cash on Friday when she would collect the car. Sally worked with Mark and thought that this would be a good car for the price. However, her letter got lost in the post and never arrived at Mark’s address.
On Thursday, Mike went to Mark’s address and inspected the car. Mike was happy with the state and condition of the car, and enquired whether it would be possible to pay tomorrow afternoon as he needed time to sort out the finance. Mark agreed to this.
On Friday morning, Sally turned up at Mark’s premises with the 5,500 cash but Mark refused to sell the car to her because he thought he had an agreement with Mike. As soon as Sally left, Mike rang Mark indicating that she no longer wished to purchase the car because she could not raise the money. Fuming with anger over his recent luck, Mark turned to his son, Raphael, and said that he would sell the car for 4,500. Raphael immediately told him he would buy it for that price and he went to the bank and took out 4,500 to pay his father. However when he returned Mark told him he had decided not to sell the car as he had realised he was selling it for under the market value.
Advise the parties with regards to their possible contractual claim.
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