Food Shop sent a fax to Sanyi Farm to inquire about the price of tomatoes as follows: ‘100,000 kg of tomatoes is urgently needed. Reply as soon as possible.’
Upon receipt of the fax, Sanyi Farm shipped 100,000 kg of tomatoes to Food Shop. The latter took delivery of the goods without any objection. On selling the goods Food Shop found that the quality of tomatoes did not meet the standard required and had to sell the goods at a 20% discount. Food Shop considered that there was no contract between the two parties, since its fax to Sanyi Farm did not contain the price, which was one of the essential factors to be an effective offer.
Required:
In accordance with the Contract Law:
(a) Explain the legal nature of the fax sent by Food Shop. (2 marks)
(b) Describe the legal nature of the act to take delivery of the goods by Food Shop. (2 marks)
(c) Explain whether there was a contract between the two parties. (2 marks)