Rachel Debner
FACTS. On May 1, Jill writes to Doug offering to sell Doug her unique
hedgehog
collar (diamond studded) for $1,000. The offer states that Doug must accept
her offer in writing by May 15. On May 12, Doug sees Brent walking his prize
hedgehog Spike showing off Jill’s collar, and bragging that he loves Spike’s
news “bling” (Brent has a reputation for being hip). Doug is furious and
immediately sends his acceptance of Jill’s offer to Jill by mail on May 12.
QUESTION. Has Doug accepted Jill’s offer thereby creating a contract;
meaning Jill is
in breach?
Yes, Jill is in breach because she had never indicated to Doug that her offer
had been revoked. The offer Jill made to Doug was still standing when she
gave the collar to Brent. Seeing Brent with the collar would not be considered
a revocation of the offer.
FACTS. One night in a bar, Roy and Dale are sitting at a table having dinner
with friends.
Dale keeps insisting that Roy should sell her a parcel of land for $10,000. Roy
laughs it off and finally writes out on a napkin a statement transferring the
parcel of land to Dale for that amount and both parties sign the document.
Roy believes his offer was a joke and Dale believes the offer was serious. The
issue winds up in court.
QUESTION. What analysis should a court follow in deciding whether a
contract was
formed?
The court would determine whether the situation fits the criteria for the
elements of a contract. They would also determine whether Roy’s offer can
reasonably be considered serious in intent. First, they would decide whether
the offer and acceptance were valid. The court would consider the context of
the situation to determine whether a reasonable person would find it
reasonable to assume that Roy had serious intent on making a business deal.
Whether or not the consideration is valid would also be considered.
FACTS. On May 1, Jill writes to Doug offering to sell Doug her unique
hedgehog
collar (diamond studded) for $1,000. The offer states that Doug must accept
her offer in writing by May 15. On May 12, Doug sees Brent walking his prize
hedgehog Spike showing off Jill’s collar, and bragging that he loves Spike’s
news “bling” (Brent has a reputation for being hip). Doug is furious and
immediately sends his acceptance of Jill’s offer to Jill by mail on May 12.
QUESTION. Has Doug accepted Jill’s offer thereby creating a contract;
meaning Jill is
in breach?
Yes, Jill is in breach because she had never indicated to Doug that her offer
had been revoked. The offer Jill made to Doug was still standing when she
gave the collar to Brent. Seeing Brent with the collar would not be considered
a revocation of the offer.
FACTS. One night in a bar, Roy and Dale are sitting at a table having dinner
with friends.
Dale keeps insisting that Roy should sell her a parcel of land for $10,000. Roy
laughs it off and finally writes out on a napkin a statement transferring the
parcel of land to Dale for that amount and both parties sign the document.
Roy believes his offer was a joke and Dale believes the offer was serious. The
issue winds up in court.
QUESTION. What analysis should a court follow in deciding whether a
contract was
formed?
The court would determine whether the situation fits the criteria for the
elements of a contract. They would also determine whether Roy’s offer can
reasonably be considered serious in intent. First, they would decide whether
the offer and acceptance were valid. The court would consider the context of
the situation to determine whether a reasonable person would find it
reasonable to assume that Roy had serious intent on making a business deal.
Whether or not the consideration is valid would also be considered.
