Lynne is the proprietor of a musical instrument shop. On 1 March 2015, she place
ID: 2649339 • Letter: L
Question
Lynne is the proprietor of a musical instrument shop. On 1 March 2015, she placed an advertisement in the Pop Music Magazine: For sale, rare antique Goldway Grand Piano US$100,000. Sam read the advertisement on 2nd of March 2015 and telephoned Lynne saying I need the Goldway piano for practice and performance, but I can only pay US$85,000. Lynne replied that she could not accept less than US$90,000, but stated that she would not sell that item to anyone else before 7th March, while Sam considered the matter. On 5th March, Sam rang Lynne, but she closed her shop for an afternoon concert. Sam therefore sent a fax message, which was received by Lynnes fax machine. In the message, Sam agreed to buy the Goldway piano for US$90,000. Later that day, Lynnes domestic helper accidentally dropped the fax message into the waste bin while she was cleaning the shop. Lynne never read the message. During the concert, Lynne mentioned the Goldway piano to another dealer, Matthew, who immediately agreed to buy the piano for US$100,000. The next day, i.e. 6th March, Matthew happened to meet Sam in another concert and told him that he had acquired a rare antique Goldway piano. Sam went home and immediately posted a letter to Lynne that he agreed to buy the piano at US$90,000. That same afternoon, Lynne had written to Sam that she was no longer willing to sell the piano to him.
Required:
Advise Sam.
Explanation / Answer
It should be noted at the outset that for the acceptance of an offer to take legal effect, the general rule is that the acceptance must be communicated to the offeror. In this context communication means that the offeror must have the knowledge of the acceptance of the offer either from the offeree or the offeree
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