Tony decided to sell his horse Please Be True. He wrote to his friend Jimmy as follows:‘Dear JimmyI trust all is well with you old chap. Please Be True is for sale. The price is P7,000·00. If you are interested, come to the house with the money and you can take her away with you.’Jimmy received Tony’s letter and replied as follows:‘My good friend Tony, many thanks for the offer. I would dearly love to buy Please Be True. However P7,000·00 is rather too high a price for a horse. I will pay you P5,000·00 for her.’Tony did not reply to Jimmy’s letter. Two days later Jimmy phoned Tony stating that he was now willing to buy Please Be True for P7,000·00. However by then Tony had already sold the horse to Amanda.Jimmy wishes to sue Tony for breach of contract.Required:

(a) Advise Jimmy as to the legal position. (7 marks)