Contract Law -Cynthia Grape farmer Case Study
Cynthia is a grape farmer with a large farm located in the Swan Valley. On 9 January this year Cynthia sent an email to Solomon, a renowned grape supplier, stating “I have new stock that has just been harvested. I will sell you 1000kg of Centennial Seedless grapes for a total of $4500. The rate is $4.50 per kg which is a good a deal as any.” Solomon reads the email and decides that he needs more time to organise and source for vendors.
The following day on 10 January Solomon writes back to Cynthia asking whether Cynthia could give him a few more days to decide whether he will be in a position to take the deal.
A few days later, on 12 January, Cynthia replies “that is fine with me. Let me know your decision by 5:00pm this Sunday 15 January. I will hold on to the stock for you until then.”
On Friday 13 January Cynthia gets an offer from Fiona who wanted to buy the grapes at a higher rate of $5 per kg. Cynthia decides to sell the entire stock to Fiona for $5000 and thereafter sends an email to Solomon on the same day informing him that the grapes had been sold and were no longer available. Solomon reads Cynthia’s email but decides to ignore it and continues to source for vendors.
On Sunday morning (15 January), Solomon finally organises a group of vendors ready to distribute the grapes on his behalf and he writes back to Cynthia stating “Cynthia – I accept to buy the grapes but will only buy them at a rate of $4 per kg. This is the maximum amount I will pay. I am ready to send you the total of $4000 to your designated account.” Cynthia immediately responds to Solomon’s email by emphasising that the entire stock of grapes had already been sold.
Solomon is upset by Cynthia’s response. He feels that he has a binding transaction with Cynthia for the purchase of the grapes. He comes to you seeking advice on the legal position.
Advise Solomon on the legal implication of the communications and any potential transaction between him and Cynthia.
Restrict your research to legal principles and cases covered from session 1 – 4. [30 Marks]
