Facts:
On the 11th March 2019, Tom writes to Kate offering to sell her his car for €6,000. Kate receives the letter on 13th March 2019 and she writes him a letter him offering to pay €5,500 and asking that he notify her immediately if he is interested.

Tom receives her letter and writes a replying letter to Kate on the same day (13th March 2019) accepting her price. Kate subsequently changes her mind and decides to buy a bicycle. On the 14th March 2019, she leaves a message on Tom answering machine stating that she is no longer interested in the car. As Tom is not in the office that day, he does not immediately receive this message. On the 15th March 2019, Tom hears the message on the machine and Kate receives his letter. When Kate refuses to proceed with the purchase, Tom says that he will sue her for breach of contract.

Kate then reads an advertisement placed by Sean in the paper offering a bicycle for €200. Kate responds by email agreeing to pay the price. Sean writes asking for €250. Kate insists that she has a contractual right to buy the bicycle for €200.

(1) Define the term offer (10 marks)
(2) Define the term acceptance (10 marks)
(3) Does Kate have a contract with Tom? Give detailed reasons for your answer. Candidates should refer to relevant case-law in their answer
(30 marks)
(4) Does Kate have a contract with Sean? Give detailed reasons for your answer Candidates should refer to relevant case-law in their answer
(30 marks)