Case Study of Abena - Accounting and Finance Assignment Help

Assignment Task:

Abena has decided to sell her car and parks it outside her house with a notice on the front windscreen stating: “For sale; pristine condition; one owner; £4,750 or near offer. Please call at 1 Farmers Road or Telephone 0201-123456. First person to agree on a price will get the car”.
On Monday at 9.00am, Bernice sees the car, but as she was running late for a dental appointment, she telephones Andrea from work at 10.00am, and makes an offer of £4,500, which Abena says she would like to consider.
Bernice says that she will assume Abena has accepted her offer unless she hears from her by 9.00pm that evening, a proposal to which Abena agrees.
At 11.00am on Monday, Charles calls at Abena’s house, but Fiona, Abena’s daughter, was the only person at home. He therefore leaves a note reading; “Monday 11.00am. Please keep the car for me. Here is a cheque for £4,750, Charles”. Fiona leaves the cheque together with the note on a desk in Abena’s study.
At 12.15pm on that same Monday, David passes by the car and sees the notice, and within a few minutes, posts a first class letter of acceptance together with a cheque for £4,750, using the post box at the end of the street. Unfortunately, David misaddresses his letter, so it arrives on Friday.
At 3.00pm on Monday, Abena decides to accept Bernice’s offer and posts a letter of acceptance to Bernice’s business address, saying: “I agree to sell on your terms. Because of the lower price, can you pay in cash”?
At 9.30pm on Monday, Abena reads Charles’ acceptance and immediately telephones Bernice’s business address, leaving a message on the telephone service answering machine: “Ignore the letter you will receive, deal off, Abena”. Bernice is away on business and only listens to the tape on Wednesday evening.

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