Additional Offer and Acceptance Problem

1. Clinton, a vintage clothing retailer, sent the following signed letter to Stacy on January 3: “I

promise to sell you my collection of rare vintage Victorian hats for $15,000. This is a firm offer

that will be open until January 17 and will not be withdrawn before that date.” Stacy received the

offer on January 5.

On January 8, Clinton changed his mind and decided he did not want to sell the hats. He

sent a letter to Stacy, which she received on January 11, in which Clinton stated that he was

withdrawing his offer.

On January 12, Stacy sent a letter to Clinton, accepting his offer. Due to delays in the

mail, Clinton did not receive this letter until January 19. When Stacy went to Clinton's store on

January 21 to pay for the hats and arrange for delivery, Clinton said there was no contract and

refused to take payment or give the hats to Stacy.

(a) In action by Stacy against Clinton for breach of contract, judgment for whom?

Explain.

This is an irrevocable offer because Clinton signed a contract with formal language of the

"will remaining open until" and not to be withdrawn. Therefore, the second letter sent by

Clinton revoking the offer has no effect. On the other hand, Stacy's acceptance concerning the

offer was not received until after the earlier set deadline, as per the rule in the mailbox.

Therefore, Stacy's acceptance of the offer was valid from the moment she accepted, which was

on January 12. Therefore, Stacy's action against Clinton for contract breaching would favor

Stacy in the judgment.

 (b) Assume instead of the information in the first paragraph that Clinton’s letter

states, “This offer will expire on January 17.” Would this change your answer to

part (a)? Explain.

This would not change my answer because Stacy had already accepted the offer, and the mailbox

decided to delay. Even after Clinton was revoked, the court would still judge in favor of Stacy.

This is because the offer was to expire on January 17, and Stacy had accepted earlier.