Communication of Acceptance Flashcards
On May 1, Hal tells Gretta, “I’d like you to install my new Betaline video system. When might you do it, and what would you charge?” Gretta responds, “I can do the work on May 9 for $250.” Hal replies, “Let me think it over,” to which Gretta says, “Fine.” On May 2, Gretta writes, dates, and drops in the mail a letter addressed to Hal: “Sorry, I can’t install your Betaline system.” On May 3, Hal writes, dates, and drops in the mail a letter addressed to Gretta: “I accept your offer.” On May 4, Hal receives Gretta’s May 2 letter of revocation. On May 5, Gretta receives Hal’s May 3 letter of acceptance.
These parties form a contract
A. on May 3.
B. on May 4.
C. on May 5.
D. not at all.
A. on May 3.
Questions 6 & 7. On October 1, Bella spoke with Sally:
October 1, Bella: I have a large document that I want you to photocopy. It’s 50,000 pages, and I need 10 copies. Can you do it?
Sally: Oh, I think so, certainly. Let me get back to you with a price and timetable.
October 4, Sally (by fax): Regarding the job: I can complete it by October 10 for $15,000.
Later on that same day at 1:00 P.M., Bella composed this signed writing: “Thanks. I’ll bring you the document tomorrow morning, October 5.” Bella attempted to transmit that writing by fax, but she saw that her fax machine did not function.
Assume that Bella then took the document to a hand courier. At 1:20 P.M. she paid the courier his $15 fee, and he promised to deliver the document by 3:00 p.m.. Bella returned to her own office. At 2:00 p.m. the courier set out for Sally’s office. At 2:30 P.M. before he arrived, Sally telephoned Bella:
Sally: I can’t do the copy job.
Bella: I’ve already accepted your offer with a message that you’ll receive by hand delivery.
Sally: I don’t yet have it and, as I said, I withdraw the offer.
Bella sues Sally alleging breach of contract. Sally responds by asserting that the parties never formed a contract because she effectively revoked her offer. Among the following, which represents a judicial decision most consistent with law?
A. When Sally sent Bella her fax of October 4, she accepted Bella’s offer. Consequently, the parties formed a contract.
B. When Bella left her document with the courier, she accepted Sally’s offer. Consequently, the parties formed a contract.
C. When Sally announced her revocation, she had no notice of Bella’s writing. Consequently, the parties did not form a contract.
D. Bella took no action in reliance on the agreement, and Sally’s withdrawal caused her no harm. Consequently, the parties did not form a contract.
B. When Bella left her document with the courier, she accepted Sally’s offer. Consequently, the parties formed a contract.
Questions 6 & 7. On October 1, Bella spoke with Sally:
October 1, Bella: I have a large document that I want you to photocopy. It’s 50,000 pages, and I need 10 copies. Can you do it?
Sally: Oh, I think so, certainly. Let me get back to you with a price and timetable.
October 4, Sally (by fax): Regarding the job: I can complete it by October 10 for $15,000.
Later on that same day at 1:00 P.M., Bella composed this signed writing: “Thanks. I’ll bring you the document tomorrow morning, October 5.” Bella attempted to transmit that writing by fax, but she saw that her fax machine did not function.
Assume now that when Bella discovered she could not fax her message, she took it at 1:20 P.M. to Binko’s Fax Service. There she found a long line of customers waiting to use Binko’s only working fax machine. Rather than join the line, Bella left her document with Rob, a Binko employee. She paid Rob Binko’s $2 fax fee and supplied him with Sally’s fax number. Bob promised to dispatch the document as soon as the machine should become available. Bella returned to her office, and at 2:00 P.M. telephoned Binko’s. Rob answered and Bella asked, “Have you faxed the document?” “No, not yet,” Bob answered. “Do you still want me to do so?” “Yes, definitely,” said Bella, to which Rob replied, “We’ll send it by 2:30 P.M.” At 2:15 P.M., Sally telephoned Bella:
Sally: I can’t do your copy job.
Bella: I’ve already accepted your offer with a signed writing that I left with Binko’s. You’ll have it by fax within fifteen minutes.
Sally: Well, I don’t have it now and, again, I withdraw my offer.
Bella sues Sally alleging breach of contract. Sally responds by asserting that the parties never formed a contract because she effectively revoked her offer. Among the following, which represents a judicial decision that is arguably correct? (Note: Two decisions might, of course, reach opposite results although each is arguably correct.)
Bella accepted Sally’s offer when she paid Binko’s fee and left her writing to be faxed. Consequently, by 2:15 P.M. she had accepted Sally’s offer. Sally’s revocation was ineffective.
I. For so long as Binko’s had not yet sent Bella’s message by fax, Bella retained the right to countermand her instruction and to have the document returned to her.
II. Consequently, at 2:15 P.M., she had not put it out of her possession, meaning that she had not accepted Sally’s offer, and that Sally effectively revoked it.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
C. Both I and II
