In this scenario, the contract between Peter and the owner is an oral or verbal contract. Peter shows his intention of purchasing the timber and makes an offer to the owner. His offer is a valid offer as he communicates it to the owner, and moreover, makes express terms by paying £ 50 and taking assurances not to sale it to someone else. His offer is a valid one as it has been verbally communicated to the owner and the owner’s acceptance is also valid as he has assured Peter that he will not sell the timber to anyone else. Both have an intention to create a legal relation, hence this element also exists. The elements of consideration, certainty and capacity are also present hence it is a valid contract. Now it is binding upon both the parties to fulfil the terms of the contract. Initially, the breach of the terms of the contract has been committed by Peter who does not go back the same day. According to Peter’s promise, he is supposed to collect the timber from the owner on the same day in the evening, but he does not show up. Officially, the owner is liable to wait for Peter till the evening, but as Peter arrives the next day, so the breach of contract has already been committed. In this scenario, Peter cannot claim any damages or compensation from the owner, as he himself did not fulfil the terms of the contract.