Adam Hues owns and runs a successful caf and catering business, Caf Express, in the heart of Valley, Brisbane. He is tired of working long hours and…

Adam Hues owns and runs a successful café and catering business, Café Express, in

the heart of Valley, Brisbane. He is tired of working long hours and decides to sell

Café Express. Adam contacts Williams and Associates Real Estate Agents to arrange

the sale of the business.

Williams and Associates place an advertisement in the local newspaper advertising

Café Express for sale. The advertisement reads: 

URGENT SALE – Café Express

Café Express located in the heart of Valley (situated on Brunswick Street), is

available for sale. This rare business opportunity will not be on the market for

long!

All furniture, equipment and current stock inclusive of the business sale.

Sales are approximately $750,000 per annum (excluding GST) and owner-operator

profits are approximately $120,000 per annum.

All reasonable offers above $350,000 will be considered. For more information or

to make an offer, please contact Brad Williams on 0456789012

Stephanie Brown, a close family friend of Adam, notices the advertisement in the

newspaper and telephones Adam directly. Stephanie, knowing that Adam is fed up

with running the restaurant and he wants to leave the hospitality industry, offers to

purchase Café Express for $300,000.  As Stephanie’s offer is $50,000 below the

minimum asking price, Adam is hesitant to accept the offer. Stephanie tells Adam to

think about her offer and to reply to her via phone or email at the end of the week, but

no later than the coming Saturday at 5.00pm.  

On Wednesday morning, Adam emails Stephanie advising her that he is willing to sell

Café Express to her for $300,000. Stephanie reads the email and decides to phone

Adam on Wednesday night to thank him for accepting her offer.   

On Wednesday afternoon, Brad Williams from the Real Estate Agency contacts

Adam and informs him that a businessman, Conrad Jones has provided a written offer

to purchase Café Express for $400,000.  Brad tells Adam to accept the offer on his

behalf.  

Adam immediately phones Stephanie and tells her to disregard the email that he had

sent her earlier that day. Stephanie is very angry and believes that she has formed a

legally binding contract with Adam.

Advise Stephanie and Adam as to whether they have formed a legally

enforceable contract. Discuss your answer with reference to the law of contract

only…

What are the relevant contract cases and any additional information I should talk about??

I am aware there is an issue with acceptance but would like to know if other cases are included??

Thanks for your help

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