On May 1, Footloose Pty Ltd placed the following notice in the Morning News newspaper: Special on boots - Special Discounts Footloose Pty Ltd is awaiting the delivery of the latest winter collection of boots from Italy. Styles include ankle boots and knee-high boots. Prices start at $5,000 per hundred pairs (certain styles only); big discounts may be negotiated for bulk orders. All inquiries to Mr Peters, Sales Manager, on 1300 987 654 or by fax on 02 123 456. On May 12, Kinky Boots sent the following fax to Mr Peters: We accept your offer in the Morning News. We wish to order 500 pairs at $5,000 per hundred. Details on delivery to follow. On May 15, James, the owner of the retailer James’s Shoes, which had several regional stores throughout Australia, sent the following fax to Mr Peters at Footloose:
We refer to your notice in the Morning News and would like to purchase 2,000 pairs of knee-high boots. Our best price is $75,000 including GST and delivery. Please advise. On May 18 Mr Peters sent the following fax to James: Footloose will sell 2,000 pairs of knee-high boots for $75,000, excluding delivery. Payment by cash or bank cheque is due on delivery. Please advise. James immediately wrote the following letter to Mr Peters, which was mailed on May 19: We refer to your fax of 18th May and are prepared to meet you on those terms.
Please let me know the earliest delivery date. On May 25, Mr Peters telephoned James. After a short discussion, James faxed a copy of the letter mailed on May 19. During this conversation the parties agreed that James’s Shoes would take delivery of the boots from Footloose’s Sydney warehouse on June
Referring to relevant legal principles, discuss the legal effect of each of the forms of correspondence between Footloose, Kinky Boots, and James’s Shoes as stated above, and determine if a contract exists between any of the parties.