Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

John is a young entrepreneur interested in purchasing a home in the Gold Coast hinterland and converting the home into a lifestyle and wellness centre. In a letter sent by express post to Cassie on 10 February, John states: "are you interested in selling your home? If so, how much do you want for it?" Cassie received the letter on 11 February and by a facsimile to John on the same day replied: "I will sell you my home for $1.5 million with the terms and conditions of sale according to the REIQ real estate contract". Cassie's husband, George initially sent the facsimile to the wrong number. It was received by Jenna not John. George realised his error, resent the fax to John, and immediately telephoned Jenna stating that the facsimile he sent on his wife's behalf was a mistake and to disregard it. The desperation in George's voice piqued Jenna's interest, so much so that after doing some property research, she sent an e-mail to Cassie accepting the terms of Cassie's facsimile on 12 February.

On 14 February, John sent a letter to Cassie stating: "I will purchase your home and the spare block of land that you own next to your home according to the terms of your facsimile dated 11 February". Later that day, John suffered a heart attack. Fearing that he may no longer be able to work again, he sent an e-mail on 17 February from his hospital bed to Cassie, which Cassie read at 4pm on that day, stating that "Due to serious illness, I will not be able to purchase your home". On 16 February Cassie sent a facsimile to Jenna stating that "I confirm receipt of your fax dated 12 February. The home can be purchased by you for $1.6 million according to the REIQ contract provided that you pay a deposit of 10% into my bank account within 7 days. Call me if you have any queries". On 18 February, Jenna decided to pay the $1.6 million for the home and duly deposited $160,000 into Cassie's bank account. On 19 February Cassie received John's letter of 14 February.

Advise Cassie whether there is a binding contract with: (a) John; and/or Jenna

Give reasons quoting appropriate case law.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92543287
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Basic Finance

Tapley dental supply company has the following datanet

Tapley Dental Supply Company has the following data: Net Income = $240 Sales = $10,000 Total assets = $6,000 Debt ratio = 75% TIE ratio = 2.0 Current ratio = 1.2 BEP ratio = 13.33% If Tapley could streamline operations, ...

For the year just concluded free cash flow to equity fcfe

For the year just concluded, Free Cash Flow to Equity (FCFE) is 100 million. FCFE grows at 10% annually for the next three years, and then is constant (grows at 0%) per year thereafter. The required rate of return on equ ...

If i have all of the information is someone willing to

If I have all of the information, is someone willing to figure out ratios for me and provide the steps? I have two assignments that I want to get done today. I just do not have the patience to figure out how to plug the ...

Noel and noelle are thriving young professionals noel earns

Noel and Noelle are thriving young professionals. Noel earns $75,000 as a financial planner and Noelle earns $85,000 as an occupational therapist. They have no children. Both Noel and Noelle are covered by an employer sp ...

Average inventory is 415435 and cost of goods sold is

Average inventory is $415,435 and cost of goods sold is $1,410,000. On average, how long did a unit of inventory sit on the shelf before it was sold?

How many years will it take for 197000 to grow to 554000 if

How many years will it take for 197,000 to grow to 554,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding of interest?

Barely heroes corporation has bonds on the market with 145

Barely Heroes Corporation has bonds on the market with 14.5 years to maturity, an YTM of 9 percent, and a current price of $850. The bonds make semiannual payments. What must the coupon rate be on Barely Heroes' bonds?

What is venture capital and what types of firms receive

What is venture capital, and what types of firms receive it? What are some of the important services provided by underwriters? What type of underwriting is the most common in the United States, and how does it work? What ...

Craigs cake company has an outstanding issue of 15-year

Craig's Cake Company has an outstanding issue of 15-year convertible bonds with a $1,000 par value. These bonds are convertible into 80 shares of common stock. They have a 13% annual coupon interest rate, whereas the int ...

The free cash flows in millions shown below are forecast by

The free cash flows (in millions) shown below are forecast by Bailey Brothers. If the weighted average cost of capital is 11%, and FCF is expected to grow at a constant rate of 5% after Year 3 (i.e., Year 4 to infinity) ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As