End-of-chapter questions: Answer Guidance 3.1

This is a typical question on offer and acceptance. The key issue from the first paragraph is whether Fitz is making a promise to sell, and how you interpret ‘I am prepared to sell’ (see too Chapter 12).

Olivia’s bid is distinguishable from Harvela Investments Ltd v Royal Trust Co of Canada Ltd [1986] AC 207, HL because of the maximum set. This then requires discussion of the nature and acceptability of referential bids. You should also consider when the letter is communicated, and whether Fitz’s failure to open the letter matters (cf Blackpool and Fylde Aeroclub Ltd v Blackpool Borough Council [1990] 1 WLR 1195).

Cyrus’ email is complicated and requires you to consider the facts of the problem carefully. Are the parties agreed before the 09.00 deadline? The issue of timing is also relevant to Huck’s bid.

When you advise Fitz, you should advise him as to whether he is bound to sell to anybody. It may be that you conclude that no contract has been entered into, depending on the view you take to referential bids and the emails with Cyrus. He might then be free to accept Huck’s bid.