Law of Contract Between Bob and Kevin


Kevin advertised the sale of his 2 monts old “iAM” smart-phone in the “All Things Phoney” on-line magazine on 3rd February. Bob was interested in buying the “iAM” smart-phone for his brother, Stuart. Bob contacted Kevin on 6th February to ask about the price. Kevin said that he would sell his “iAM” smart-phone for $288.00. Bob responded thta he would like to check with his brother first. Kevin said that he would give the phone to his sister as a gift if Bob does wish to buy it. Bob requested for a few days to consider the purchase and get back to Kevin. Kevin told Bob to respond to him soon.

Bob met Stuart on 14th February, Kevin retrieved the message from Bob. However, Kevin did not respond as he had already put up a notice on 12th February in the “All Things Phoney” on-line magazine withdrawing the sale of his “iAM” smart-phone. Bob did not see the notice even though he read the on-line magazine dated 12th February.

On the morning of 16th February, there was an announcement that “iAM2” smart-phone would be launched on 18th February at the price of $388.00. Soon after this announcement, fans of “iAM” smart-phones who wished to upgrade their existing smart-phones started to sell their existing “iAM” smart-phones at $ 188.00 and below. When Kevin saw this, he quickly contacted Bob at 1 p.m. and requested Bob to meet him at “Catay” cinema awith $ 288.00 cash for the smart-phone. Stuart had contacted Bob at 11.00 a.m. soon after hearing the announcement and told him not to waste his money buying “iAM” smart-phone.

Kevin was furious when Bob told him that he was not proceeding with the purchase. Kevin said that he would bring the matter to court and use the voice recording as evidence of contract. Advise Bob.

Discuss the application of the rules and exceptions in relation of the above scenario and conclude on the formation of a contract.


This question belongs to business law and discusses about the law of contract.

Word count: 975


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