On Monday, 13 January 2014, Ada wrote to Ben saying, “Please sell me your vintage BNW car for $80,000”. On Tuesday, 14 January 2014, Ben replied by leaving a message on Ada’s voicemail, “Sure, provided you pay by cash”. Ben then changed his mind and he posted a letter to Ada which read, “I have reconsidered the matter. I am no longer able to sell you my BNW”. This letter arrived on Thursday, 16 January 2014, before Ada checked her voicemail.
1) Advise Ada and Ben.
There is no contract between Ada and Ben. This is because initially Ben leaves a message on Ada’s voicemail to accept the offer. However, Ben changes his…show more content… On the other hand, there is a binding contract between Ada and Ben if Ada has knowledge of the acceptance by Ben. The contract comes into existence as soon as Ada checks the voicemail. With reference to the case of Entores Ltd v. Miles Far East Corporation in 1955, the plaintiff in London sent a telex to the defendant in Amsterdam offering to buy goods from the defendant. The defendant sent a telex in return to the plaintiff accepting the offer. Therefore, a contract was made between the parties when the defendant’s acceptance was accepted by the plaintiff.4
b) Because of a fault on Ada’s voicemail system, Ben’s message had not been recorded;
There is no contract between Ben and Ada. This is because Ben’s message has not been recorded, so Ada does not receive and read the message. Since there cannot be acceptance of an offer without the knowledge of it, acceptance must be communicated to the offer, and mere inactivity or silence on the offeree does not create a contract as well. The rule laid down in Felthouse v. Bindley that mere inactivity or silence cannot amount to an acceptance is correct in 1862. The plaintiff offered to buy a horse from his nephew, John, who was going to sell it by auction. John intended to accept his uncle’s offer and advised the