Contract Law


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1. On Monday 1st May, an advertisement appeared in a newspaper called the “Money Times.‟ It advertised a sale of shares in Goldspec PLC. (“Goldspec‟), a gold mining company. Daria saw the advertisement on the day of its publication. She immediately completed the application form contained in the advertisement and posted her request for 10,000 shares at $1 per share. Together with the application form, she enclosed her cheque for $10,000. Daria‟s application form and cheque were received by Simon, Goldspec’s Company Secretary, on Wednesday 3rd May. Simon sent the share certificates by post to Daria on the same morning. During the night of Monday 1st May, Daria began to have doubts about the wisdom of her purchase. On Tuesday 2nd May, she sent a letter to Goldspec’s Company Secretary, withdrawing her offer to purchase the shares. On Thursday 4th May, it was reported in the press that Goldspec had discovered a major new seam of gold in one of its South African mines. That evening, Simon attempted to telephone Daria to inform her that Goldspec no longer wanted to accept her application for the purchase of shares. Daria was not available and so Simon left a message on her telephone answering machine, stating that Goldspec withdrew its acceptance of her application and that the company required her to return the share certificates as soon as she received them. Daria heard about Goldspec’s discovery of a new seam of gold on the 6 o‟ clock news that evening. She decided to proceed with the purchase of the shares. Daria‟s letter purporting to revoke her offer of 1st May was received by Simon on Friday 5th May at 9.00 am. At 10.00 am (on Friday) Daria received her share certificates in the post. At 10.30 am she heard Simon‟s demand for the return of the share certificates on her telephone answering machine.
Advise Daria as to whether she is entitled to keep the 10,000 Goldspec shares. (20 marks)

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