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Evaluate samples of contracts

9. On Monday, Sam's Computer Company wires Bob's Computer Mart, "I have two IBM XT's for sale for \$1700 each. You pay cost of shipping." Bob received the offer on Monday afternoon and wired back, "You have a deal. 30 days same as cash." On Tuesday morning Sam called to revoke the offer. On Tuesday afternoon Sam received the wire. Sam says there is no contract and Bob says there is. Who is correct? Why?

5.Barnes & Noble faxes to Woodchip Publishing Company on May 1, 2002 the following:
Please ship immediately six copies of NOBODY FIXES REAL CARROT STICKS ANYMORE.
Price: \$6.00 Shipping: \$2/book
Woodchip ships six books with an invoice as follows:
Six NOBODY FIXES REAL CARROT STICKS ANYMORE @ \$6.00 = \$36.00
Shipping and Handling = \$6.00

Is there a contract?

6.In #5 above, suppose that the fax from Barnes & Noble read:
Please ship immediately via priority mail - 10 Copies of NOBODY FIXES REAL CARROT STICKS ANYMORE.
Price: \$6.00 per book Shipping: \$3.95 total

Woodchip ships the books at the \$6 price but ships them via two-day UPS at a price of \$5.95. Is there a contract?

Solution Preview

9. On Monday, Sam's Computer Company wires Bob's Computer Mart, "I have two IBM XT's for sale for \$1700 each. You pay cost of shipping." Bob received the offer on Monday afternoon and wired back, "You have a deal. 30 days same as cash." On Tuesday morning Sam called to revoke the offer. On Tuesday afternoon Sam received the wire. Sam says there is no contract and Bob says there is. Who is correct? Why?

In my opinion, there is no contract. The offer and acceptance are the beginning steps in the contract process. The agreement involves a meeting of the minds where the parties to a contract agree upon the terms of the contract. In this case, even when Bob wired back and agreed with the ...

\$2.19