Peter wished to buy a new laptop computer and he wrote a letter to David, an independent retailer selling computers on 5th January 2021. In the letter, he asked David if he stocked the HP 330 model laptop and, if so, whether David could deliver it by 20th January 2021. David replied that he did stock the HP 330 model laptop and included an invoice with the reply and a letter stating that he would not be able to deliver the laptop until 12th February 2021. Peter then telephoned David at 5.30hrs on 10th January 2021 but the telephone was not answered. He immediately sent a fax to David stating that he would like to purchase the HP 330 model laptop and that delivery on 12th February was acceptable but, if it could be delivered at an earlier date, it would be very much appreciated. The fax was received and read by Susan, David’s secretary, at 9.00 am the following day. She printed the fax and put it in her in-tray, intending to give it to David when he arrived at the office. Peter, meanwhile, discovered that he could purchase the HP 330 model at a cheaper price from another supplier and he telephoned David on 15th January to tell David that he (Peter) no longer wanted to purchase the laptop. David, who had just been given the printed fax by Susan said that as far as he was concerned, there was a contract between him and Peter and that he would be delivering the laptop on 12th February as agreed. Advise Peter and David regarding their contract.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 56P
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Peter wished to buy a new laptop computer and he wrote a letter to David, an independent retailer selling computers on 5th January 2021. In the letter, he asked David if he stocked the HP 330 model laptop and, if so, whether David could deliver it by 20th January 2021. David replied that he did stock the HP 330 model laptop and included an invoice with the reply and a letter stating that he would not be able to deliver the laptop until 12th February 2021.
Peter then telephoned David at 5.30hrs on 10th January 2021 but the telephone was not answered. He immediately sent a fax to David stating that he would like to purchase the HP 330 model laptop and that delivery on 12th February was acceptable but, if it could be delivered at an earlier date, it would be very much appreciated.
The fax was received and read by Susan, David’s secretary, at 9.00 am the following day. She printed the fax and put it in her in-tray, intending to give it to David when he arrived at the office.
Peter, meanwhile, discovered that he could purchase the HP 330 model at a cheaper price from another supplier and he telephoned David on 15th January to tell David that he (Peter) no longer wanted to purchase the laptop. David, who had just been given the printed fax by Susan said that as far as he was concerned, there was a contract between him and Peter and that he would be delivering the laptop on 12th February as agreed.
Advise Peter and David regarding their contract. 

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