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...

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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! 4 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 or [email protected] 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
Answered Same DayDec 19, 20192105AFEGriffith University

Answer To: Adam Hues owns and runs a successful café and catering business, Café Express, in the heart of...

David answered on Dec 24 2019
95 Votes
Contract Laws
Issues
The issues of Stephanie
own with Adam Hues is described in this report. Adam advertises to sell the cafe in 350000 dollars initially. But Stephanie
sent him an e mail suggesting a price of 300000 dollars to purchase the cafe. Later Adam Hues accepts this proposal by sending an email to Stephanie. Stephanie accepts the proposal. At that time, another person Conrad offers Adams to purchase the cafe at much higher price. Adam immediately responds to Stephanie that he cannot sell the cafe to her. Stephanie is angry because she thinks that she has legally enforceable contract formed with Adam.
Laws
California statute confers the uniform commercial code that states that sale of those goods that cost more than 500 dollars cannot be enforceable unless there is some writing by the parties and it requires sign of competent parties
Analysis
Contract definition
According to Mckendrick, law of contract may be described as
eech of law of contract that determines situation in that a promise is measured to be legally obligatory or not (McKendrick, 2014). The contract definition by author describes that it is agreement that requires obligation from the participants of contract and these requirement are compulsory by the law.
Additionally author declares that lack of settled definition of contract amounts to increase effort to principle of freedom to a contract for a weaker participant. Formation of Contract needs 7 factors - Offer, Acceptance, Consideration, Intention To Create Legal Relations (ITCLR), Capacity, Vitiating Factors, and Illegality.(Chen-Wishart, 2015)
Contract formation
Offe
The offer is accepted by other person reveals that a contract is formed and it shall be legally binding...
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