| A | B |
| Rita says to Babita that she will sell her her watch when she buys a new one | Invitation to treat - No contract |
| 7th August - Rita buys a new watch but does not tell Babita | (Rita) No contract - no breach |
| 8th August - Babita finds out and says it is a breach of contract | (Babita) No contract - no breach |
| 10th August - Rita offers to sell the watch to Babita for £200 | Offer - No contract |
| 11th August - Babita says it is too much and offers £150 | (Babita) Counter offer - No contract |
| 12th August - Rita says it is too low and offers £175 | (Rita) Counter offer - no contract |
| 12th August - Rita says yes and takes money | Acceptance - Contract - Consideration £150 |
| 13th August - Rita sells to Bob for £250 | Breach of contract |