Business Law and Ethics

On 1 November, CFAO Plc sent a letter to Canon Ltd, with which it had been negotiating, offering it a contract to service all CFAO’s birdseed processors each month for the next five years at a cost of GHS20,000 per annum. The letter said that Cannon should reply by return of post. Unfortunately, the letter contained an error in the address and was not delivered to Cannon until 6 November. Cannon replied at once, accepting. This letter was posted at 11am on 6 November. In the meantime, on 4 November, CFAO had received an offer from Compu Ghana to do the servicing work for GHS15,000 per annum. CFAO, having heard nothing from Cannon, telephone Compu Ghana on 5 November and offered it the contract at GHS10,000. Compu Ghana accepted. CFAO sent a fax to Cannon on 6 November telling it that the offer of 1 November was withdrawn. This fax was received on Cannon’s fax machine at 10.45am on 6 November, but not read by anyone until 5pm on the same day.

Advise CFAO, Cannon and Compu Ghana

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