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NSW Selling Printer - Who has Contract for Sale?

Discussion in 'Commercial Law Forum' started by RogerPrintCo, 28 March 2016.

  1. RogerPrintCo

    RogerPrintCo Member

    28 March 2016
    Likes Received:
    R is in business selling high-level office equipment. The following events took place:

    1 May: R spoke to his brother, A, who has an office in Sydney, about a new printer that R had in stock.

    A: “How much is it?”
    R: “The lowest price I would consider is $1000.”
    A: “I’ll take it.”
    R: “OK, you can have it for $1400.”
    A: “But you said $1000. We now have a contract for that price.”
    R: “We don’t have a contract. The price is $1400. I only have one in stock, but I’ll give you the first option at $1400 if you let me know in person by 6 May.”

    2 May: A told his friend, M, that he intended to buy the printer. Later that day, M told R that A intended to buy the printer.

    3 May: At 1:00pm, R, forgetting his conversation of 2 May with M, offered to sell the printer to J for $1300. J replied, “If you don’t hear from me by 5:00pm today, you can assume I accept”.

    R did not respond to this, but at 4:00pm, R contacted J again, promising to also give J a large quantity of free paper if J agreed to buy the printer. R did not hear from J again that day.

    4 May: R changed his mind about selling to A. He tried to contact A but was not able to reach him.

    5 May: As he could not contact A, R telephoned M and asked her to tell A that R would no longer sell to him.

    6 May: M told A that R did not want to sell him the printer. A was not sure whether to believe her.

    7 May: A phoned R agreeing to buy the printer. During their conversation A said:

    “1. We had a contract for the printer at $1000 on 1 May;
    2. If not, then we had a contract for the printer at $1400 on 2 May;
    3. If not, then we now have a contract for the printer at $1400.”

    R is confused and is seeking for your help.

    Help R on whether he has a contract of sale to sell the printer to A or to J

  2. Rod

    Rod Well-Known Member

    27 May 2014
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