"Whilst Viko is confident of its chances of success on appeal, it is clear that both parties face litigation risk. For this reason, Viko is still prepared to resolve this matter on the basis of an agreed settlement. It is prepared to offer Magnum $124,677.18, plus the return of the remaining Imager machines, in full and final settlement of all matters as between the parties. The figure of $124,677.18 is arrived at by adding the costs and disbursements as fixed by the Registrar to half of Magnum's original principal claim. A cheque for $124,677.18 is enclosed with this letter. Presentation of this cheque will constitute acceptance of this offer.
Should the offer contained in this facsimile be acceptable to Magnum we look forward o confirmation of that."

"We refer to your letter of 2 December 1997 which was accompanied by a cheque for $124,677.18. As advised to you in our telephone conversation (Bagio/Kelly) we were to obtain instructions from our client in relation to your settlement offer. We attempted to fax your letter to our client but were unable to complete a transmission. Our client has not yet even seen the terms of your letter.
Unfortunately, due in administrative error your cheque was mistakenly banked. We are prepared to forward to you immediately our trust account cheque for the same amount. You may wish to put a stop on the cheque which has been presented. We are currently holding the funds in our trust account on trust for your client and seek your advice as to whether you require the funds to be placed on interest bearing deposit.
The employee involved, who acted without instructions, is prepared to swear an affidavit which will verify this information. Please advise if this affidavit will be required by you. The banking of the cheque was therefore an administrative error which cannot be deemed to be acceptance of your client's offer.
Please contact us urgently with regard to this matter."