Highlights
Question
On 11 May, Andrew wrote to Ben offering to sell him 200 bags of potatoes at N$100 per bag. On 13 May, Ben posted a reply accepting Andrew`s offer but adding that if he did not hear from Andrew, he would assume that the price included delivery to his (Ben`s) house. The following morning, before Ben`s letter arrived, Andrew heard a rumour that the price of potatoes was about to fall dramatically. Andrew immediately sent a fax to Ben, stating that “the price includes delivery”.
Ben received Andrew`s fax at 10am on 14 May, whereupon he immediately posted a letter confirming his acceptance of Andrew`s terms. Over lunch, however, Ben also heard the news about the slump in the price of potatoes, whereupon he sent Andrew a text message stating: `decline yr offr of pots`.
The price of potatoes only fell to N$70 per bag and Ben refuses to accept delivery at Andrew`s price.
Analyse the case and advise Andrew
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