Alan, Who Owns A Clothing Business, Is The Tenant Of A Building Owned By Bill. He Has Been Thinking About…

Alan, who owns a clothing business, is the tenant of a building owned by Bill. He has been thinking about buying his own premises for his business.

Ten days ago Alan received a letter from Bill in which Bill stated that he (Bill) was ‘interested in selling’ the building and asking Alan to ‘let him know’ if he (Alan) was willing to buy the building for the price of $450,000.

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Three days later Alan posted a letter to Bill in which he agreed to buy the building for the price ($450,000) set out in Bill’s letter.

After receiving Alan’s letter, Bill telephoned Alan and told him that he had decided that he did not want to sell the building.

Required:

Alan seeks your advice as to whether he has a contract with Bill for the purchase of the building.

Use the legal method approach when writing your answer.

[Hint – examine and discuss each communication between Alan and Bill]

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