On January 9, Ben called Sheila and said he would like to buy 800 yards of Egyptian silk at the price of $80 per yard. Ben said he will send an order form to Sheila the next day. The next morning, Ben sent a signed order form to Sheila by post. The order form stated, "I would like to buy 800 yards of Egyptian silk at the price of $80 per yard to be delivered to my warehouse on 1 February”. Sheila received the letter two days later. She sent a separate agreement to the Ben (by post). The agreement stated the contract was made on the terms set by Sheila for the sale of 800 yards of Egyptian silk at the price of $90 per yard to be collected at Sheila’s warehouse on 1 February. The terms included a price variation clause. There was a detachable slip at the end of the document that required Ben’s signature. Ben received the letter in the following day. He signed the detachable slip and wrote at the bottom, “the terms would be in accordance with the original order form dated January 10” and posted it back to Sheila on January 15. However, Sheila never received the reply from Ben. On 1 February, the Ben had not received the delivery, and he called Sheila. Sheila said she never heard from Ben and assumed he is not interested buying the Silk. Ben responded and said, “a contract was formed between us, deliver it tomorrow or I’ll sue you”. Sheila did not deliver the Egyptian silk to Ben and the price has gone up to $100 per yard now.
Advise Ben and Sheila