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Toshiba Electronics Pty Ltd, a vendor of electronic equipment, advertised, “Never to be repeated offer. 75 inch Sony Bravia OLED Teletisions @ $3500.” Bob saw the advertisement on TV and went to t
Toshiba Electronics Pty Ltd, a vendor of electronic equipment, advertised, “Never to be repeated offer. 75 inch Sony Bravia OLED Teletisions @ $3500.” Bob saw the advertisement on TV and went to the nearest Toshiba store the very next day (Thursday). He got Mollie, the sales manager, there and said, “I accept the offer on the Sony Bravia OLED Teletisions, here is my card, please deliver it as soon as possible.” Mollie told him to slow down. “Unfortunately, there has been a rush and we have sold out”, she said. “Look” said Bob, “I know my business law- we have got a contract”. Mollie responded, “No, we haven’t. The only Sony Bravia from the same series left is the demonstration model, and you can have that for $2000. Not a bad price as they usually sell for around $3500. That should make you happy.”
Bob was not sure and said that he would think about it. Then the sales manager said she would definitely keep the set for him until Friday only if Bob provides a $10 booking money. She also assured that this small amount will be adjusted during the main transaction. As Bob was unsure, he refused the arrangement. He just said he would let her know by noon the next day (Friday).
The next day at 9:00 am another customer, Mark, walked into the store, saw the demonstration model, and offered Mollie $2500 for it. Mollie sold it to Mark. At 10:30 am Friday Bob rang Mollie and told her that he would buy the demonstration set at the price she offered. Mollie then told him the bad news – the set had been sold.
Bob seeks your advice as to whether he and Toshiba Electronics Pty Ltd made a contract on either Thursday or Friday. Justify your response, citing case authority whenever relevant. When answering this question, fully consider the relevant principles, rules and propositions in the Law of Contract. Do not consider any matters that might arise in the circumstances under other relevant legislation.
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