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Contracts, Irrevocable Offers and Unconscionability

(1) On November 23, Acorn, a dress manufacturer, mailed to Bowman a written and signed offer to sell one thousand sundresses at $50 per dress. The offer stated that it would "remain open for ten days" and that it could "not be withdrawn prior to that date."
Two days later, Acorn, noting a sudden increase in the price of sundresses, changed his mind. Acorn therefore sent Bowman a letter revoking the offer. The letter was sent on November 25 and received by Bowman on November 28.Bowman chose to disregard the letter of November 25; instead, she happily continued to watch the price of sundresses rise. On December 1, Bowman sent a letter accepting the original offer. The letter, however, was not received by Acorn until December 9, due to a delay in the mails. Bowman has demanded delivery of the goods according to the terms of the offer of November 23, but Acorn has refused.

Does a contract exist between Acorn and Bowman? Explain.

(2) Henry and Wilma, an elderly immigrant couple, agreed to purchase from Brown a refrigerator with fair market value of $450 for twenty-five monthly installments of $60 per month. Henry and Wilma now wish to void the contract, asserting that they did not realize the exorbitant price they were paying. Result?

Solution Preview

(1) On November 23, Acorn, a dress manufacturer, mailed to Bowman a written and signed offer to sell one thousand sundresses at $50 per dress. The offer stated that it would "remain open for ten days" and that it could "not be withdrawn prior to that date."

Two days later, Acorn, noting a sudden increase in the price of sundresses, changed his mind. Acorn therefore sent Bowman a letter revoking the offer. The letter was sent on November 25 and received by Bowman on November 28. Bowman chose to disregard the letter of November 25; instead, she happily continued ...

Solution Summary

This solution responds to the two scenarios on contract law.

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