Tony advertises a 2014 Honda Civic car for sale at $12,999 on a website known as Ă˘â‚¬ËśKoala Car SalesĂ˘â‚¬â„˘. Mike reads the advertisement. He is interested and so calls Tony. Tony invites him to inspect the car, giving him the address.
After inspecting the car, Mike says Ă˘â‚¬ËśI will give you $7,000 for this car.Ă˘â‚¬â„˘ Tony responds, Ă˘â‚¬ËśThatĂ˘â‚¬â„˘s no good. I would want at least $10,000 as those tyres and rims are worth $4,500.Ă˘â‚¬â„˘ Mike replies, Ă˘â‚¬ËśSorry mate but it isnĂ˘â‚¬â„˘t worth that much to me.Ă˘â‚¬â„˘
Three weeks later Mike sees the same advertisement on the same website but this time selling the car for $10,500. Mike phones Tony and say Ă˘â‚¬ËśI would be prepared to pay $5,500.Ă˘â‚¬â„˘ Tony laughs and says Ă˘â‚¬ËśHow about we go back to your original price of $7,000. We have a deal.Ă˘â‚¬â„˘
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Discuss the legal effect of each communication and determine if an agreement was formed.
Assuming there was an agreement reached between Tony and Mike, discuss whether it would be supported by the necessary intention and consideration to be recognised as a contract.