Your client Jessabelle, has two successful businesses
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Your client Jessabelle, has two successful businesses

Question.

Your client Jessabelle, has two successful businesses. One as an exporter of timber and timber products internationally and the second as a ship owner who transports cargo internationally.

Jessabelle has sought your advice on the following issues;

Part A.

She believes she has negotiated the sale of a large amount of timber to a company in New Zealand managed by Tim. Jessabelle shows you an e-mail chain containing the following electronic conversation;

Hi Jessabelle have you got 200 tonnes of red cedar, high quality for exclusive furniture making, to be shipped immediately?

Hi Tim, yes, we have high quality red cedar ready to be shipped 

Hi Jessabelle, great I have a large order and require the timber by 1 April, can you deliver?

Hi Tim, yes, we have a ship leaving for New Zealand on 10 March, that would meet your time frame.

Hi Jessabelle, what is the price, I should have asked earlier?

Hi Tim, really reasonable price, $5,000 per ton.

Hi Jessabelle, that is a bit high, would you accept $4,000 per ton and payment over six months.

Hi Tim, would accept six months payment but not $4,000 per ton, with delayed payment need $5,000 per ton.

Hi Jessabelle, we could do $4,500 per ton.

Jessabelle’s executive assistant typed out a letter and placed in in a post box at Martin Place on 10 March 2020 accepting the price of $4,500 per ton.

Tim having not had a response to his final email, sources a timber supplier in Canada who is prepared to sell the timber at $4,000 per ton.

Jessabelle, asks whether she had a contract with Tim for the timber?

Advise Jessabelle whether she has a contract discuss only the International Convention for the Sale of Goods.

Hint
Business A contract is an agreement between two or more parties to work together, and it is enforced by law. The contract can be signed either to make somebody do something or fail to do it completely. In business language, a contract can either be a cost reimbursable, fixed price, or a material or time contract....

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