On 6 October, David received the following note from his uncle: Dear David, We discussed some time ago about you buying my construction equipment when I retire from business at the end of this month. I am willing to sell you the equipment for 10,000. Let me know soon as I already have a very good offer from someone else. Uncle Richard David is interested in the offer but he is unsure whether he can raise enough money by the end of October. He phones his uncle to ask whether he can have until the end of the year to pay. His uncle was away on a short business trip so he leaves a message with his secretary. David did not receive any reply from his uncle for three weeks. He arranged a loan with the local bank to buy the equipment. On 27 October, he wrote to his uncle accepting the offer and enclosed a cheque for 10,000. On 31 October his uncle phoned to inform him that he has already sold the equipment to someone else. Advise David who wishes to sue his uncle for breach of contract.

A contract is an agreement between two or more parties to do or to abstain from doing an act and which intends to create a legally binding relationship. For a simple contract to be valid one party must make an offer and the other accept it. An offer is an announcement of a persons willingness to enter into a contract….(short extract)

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