Given situation: Person O visited his neighbours house person S, who wanted to buy a land but he wouldn’t determine the price of the land. Later person O sends a letter with the quotation price of $324,000 for land. Later on June 21 st person S responded to that letter stating that he accepted the offer. However, on June 24, person O wrote back to person S that there has never been a firm to sell, and there is no enforceable contract. To discuss: Whether person S claims a valid contract in this situation.

Question

The H owned and operated a successful small bakery and grocery store. They spoke with L, an agent of Red Owl Stores, who told them that for $18,000, Red Owl would build a store and fully stock it for them. The H sold their bakery and grocery store and purchased a lot on which Red Owl was to build the store. L then told H that the price had gone up to $26,000. The H borrowed the extra money from relatives, but then L informed them that the cost would be $34,000. Negotiations broke off and the H sued. Can H win the case? Explain.

Answer 1

Question

Chapter 10, Problem 18CP

Summary Introduction

Given situation:

Person O visited his neighbours house person S, who wanted to buy a land but he wouldn’t determine the price of the land. Later person O sends a letter with the quotation price of $324,000 for land. Later on June 21^st person S responded to that letter stating that he accepted the offer. However, on June 24, person O wrote back to person S that there has never been a firm to sell, and there is no enforceable contract.

To discuss: Whether person S claims a valid contract in this situation.

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The H owned and operated a successful small bakery and grocery store. They spoke with L, an agent of Red Owl Stores, who told them that for $18,000, Red Owl would build a store and fully stock it for them. The H sold their bakery and grocery store and purchased a lot on which Red Owl was to build the store. L then told H that the price had gone up to $26,000. The H borrowed the extra money from relatives, but then L informed them that the cost would be $34,000. Negotiations broke off and the H sued. Can H win the case? Explain.

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