Question

On 5 August, X sends a written offer by post to Y, to purchase Y’s ROLEX watch for R20000 (twenty thousand rand). One of the terms in the offer is that the offer will lapse on 20 August. In response to this offer, Y writes her letter of acceptance and posts it to X on 15 August. On 17 August Y changes her mind and decides that she no longer wants to sell the ROLEX watch as it is a limited edition. Y then calls X by telephone on 18 August and informs X that she (Y) is withdrawing her acceptance and that her postal acceptance should be ignored. On 21 August X receives Y’s written acceptance that was sent by post. X seeks your advice on whether a legally binding contract was concluded between X and Y. Discuss and substantiate fully.

Answer 1

Based on the given scenario, it can be concluded that a legally binding contract was concluded between X and Y.

This is because, before the agreed date of 20th August, X withdrew her acceptance and sent it by post and also made a call to Y which informed him of her current stance.

What is a Contract?

This refers to the legally binding agreement that exists between two or more people about the terms of something.

Hence, we can see that based on the given scenario, it can be concluded that a legally binding contract was concluded between X and Y.

Notwithstanding the arrival of the postal letter of acceptance, this is considered void as there has been a change of terms that have been clearly communicated to the other party.

Read more about contract here:

brainly.com/question/984979

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