Ann, on receiving the letter thought it was a good price. She immediately replied to David stating that she was interested in buying the car and that she wanted a BMW expert to give her his opinion on the car. She sent a cheque of $100,000.00 with her letter to show her commitment in buying the car and requesting that David should not show the car to anyone until she gives her feedback on the 8th of January. On receiving the response, David immediately lodged the cheque in his bank account.
Immediately, upon receiving the letter Bev telephoned David but he was not around to take the call, she left a message on his answering machine stating that in her opinion the car was over priced and that she would pay $800,000 for it. David’s answering machine was faulty so he did not retrieve the message. Bev waited for David’s response and not wanting to lose the car left a second message on David’s answering machine that she had reconsidered her position and that she would buy the car for $1M. David retrieved both messages left by Bev on the 3rd of January.
Cathy on receiving the letter responded by posting a letter to David on the 2nd of January stating that she was willing to buy the car at the stated price of $1M and thanking him for the offer. The letter posted by Cathy was not delivered to David until the 10th of January. On the 4th of January, Cathy sent a fax to David asking him to ignore the letter she had posted on the 2nd.
Meanwhile on the 5th of January, David advertised the car for sale in the newspaper having been advised by a friend that he could get a much higher price of $1.3M for the car.
The couple introduced themselves as Mr. And Mrs. Chin, owners of...