Scenario:
City Contractors Ltd (‘CCL’) closed down its Oldcastle trade counter and storage
building in August 2021 due a big drop for building products in the area.
Northern Builders plc (‘NBL’) sent an email to City Contractors Ltd on 2 September
2021 which said: “We would like to purchase all of the outstanding stock and
equipment previously held in the Oldcastle branch from you; we have identified
specific funds for this purpose. Please state lowest acceptable asking price as soon
as possible.”
City Contractors Ltd replied by post on 3 September 2021 stating, “Regarding your
enquiry concerning our stock and equipment. We have estimated that this has a
market value of £150,000 although for a quick sale to complete by 30 September, we
can let this go at £125,000.”
Northern Builders plc replied by email on 6 September 2021, stating, “That is
agreeable to us, we accept. Please finalise the sale by emailing our Head Office
before midday on 10 September 2021.”
City Contractors Ltd decided to confirm the sale by trusting the post. A letter of
affirmation was posted to Northern Builders plc Head Office on 10 September 2021. It
did not reach the Head Office until 13 September 2021 by which time Northern
Builders no longer wanted to purchase the equipment. In fact, at 7.30 am on 10
September, Northern Builders had left a message on City Contractors’ answerphone
indicating that it no longer wished to purchase the equipment.
Critically examine the law in relation to instantaneous communications in contract law; and Appraise with reasons whether a contract has been created.