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
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
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
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