Australian Contract Law Essay Example | Topics and Well Written Essays - 1500 words

Australian Contract Law - Essay Example However, after informing James, Bert advertised the sale at $ 60,000 or near. Also, the advertisement was made on the notice board of the Historic Speed Boat Club. As a response, there was one more buyer; Alphonse. Bert duly informed the new buyer about the existing right of first refusal and claimed that he would be selling only at $ 60,000 or near. Alphonse inspected the boat and offered $ 60,000 as he came to know that someone has the right of first refusal if the amount is $50,000. Bert rang James and communicated this information and James agreed to buy the boat at the agreed price of $ 50,000. However, Alphonse claims that the speed boat was originally sold before the discussion. In the case AstraZenaca UK Limited v. Albemarle International Corporation and Albemarle Corporation (2011) EWHC 1574 (Comm), (as cited in Howell 2011), the English High Court made certain findings which reduced the ambiguity surrounding the right to first refusal. According to the terms of the rights of first refusal, if one party grants a right of first refusal to another party, the former still has the right to find a third party buyer, and before signing an agreement with the third party, the same terms should be offered to the right holder; and if the right holder accepts the terms, it should be given preference (ibid). In other words, in the given case, the seller has the right to accept any third party offer, but it has the obligation to disclose the full details of the offer to the first refusal right holder and give the chance to match the offer. If the right holder fails to match the new offer from the third party, the seller has the right to sell it to the third party Silverthorne (2006). Here, one can see that Bert had properly informed James about the advertisement for a higher price. Also, he had duly communicated with James about the new offer when Alphonse