On 2 June 2008, Luzibo wrote to Mowana Ltd applying to buy 7,000 shares in Mowana Ltd. On 5 June Mowana’s board of directors met and agreed to allot 7,000 shares to Luzibo. On 6 June at 9.00 am Luzibo phoned Mowana Ltd and informed them that she was no longer interested in buying the shares. On the same day at 10.00 am Mowana Ltd posted a letter informing Luzibo that the company had allotted her the 7,000 shares applied for. Luzibo received this letter on 9 June. Mowana Ltd wishes to sue Luzibo for breach of contract.Required:

(a) Advise Mowana Ltd whether they may sue Luzibo for breach of contract. (5 marks)