HND Common Law

1. Joe, a sales manager of Building Security Systems Ltd wrote a letter to Viacom Ltd on 13 June offering to install computerized security equipment at the canal side warehouse Viacomm Ltd was renovating for Wiggin Council for a total price of £200,000 payable upon completion of the work. The offer was to remain open until 20 July.Sam, a purchasing director of Viacom Ltd, phoned Joe on 19 June to ask if the offer included the VAT. He then posted a letter of acceptance to Joe on 27 June in which he accepted the offer on behalf of Viacom Ltd. Building Security Systems received this letter on 29 June.In the meantime, Joe has started negotiating with Info provider Ltd and sold the same equipment to them on 28 June for £250,000. He immediately wrote a letter to Sam to say that has not yet received confirmation that Viacom wants to purchase the equipment that the offer was now withdrawn. Viacom Ltd received this letter on 1 July.2. Joiners-R-Us Ltd entered into a contract with Viacom Ltd, who hold the main building contract with Wiggin Council to renovate a canal-side warehouse. Joiners-R-Us are contracted to carry out carpentry work in a block of 47 flats for an agreed price of £200,000.The main contract with Wiggin Council contains a time penalty clause which states that the building must be completed by 15 November 2008. Viacom Ltd is worried that if Joiners-R-Us Ltd did not complete the carpentry work on time he will have to recompense Wiggin Council under that clause.On the basis of this letter, Joiners-R-Us Ltd managed to persuade their staff to continue working which re-commenced on 18 October.