First Principles of Business Law

Making a contract
5. Online transactions

5.3. The use of electronic communications

 

 

 

Read the facts and the question and then choose the best answer.

A uploads a post on the Gumtree website advertising that his boat is for sale. The post describes the condition and the specifications of the boat and states a price of $6,000.  A gives his email address as the means of contacting him.  B sees the advertisement, decides he wants the boat and sends an email to A saying that he is prepared to pay the asking price for the boat and will make payment either by means of PayPal or Direct Funds Transfer to A’s account.  A replies by email to B, saying that he accepts B’s offer and providing his bank details so that payment can be made.  When he receives A’s email, B replies to A that he has decided not to buy the boat after all.  In these circumstances, which of the following conclusions can be reached?

(a)  In these circumstances, a valid contract of sale has been entered into between A and B and is enforceable by A. 

(b) In these circumstances, it is still open to B to avoid completing the sale and, in view of his reply to A, no enforceable contract comes into existence.

 
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