DO NOWOn June 2nd, Eve Bristol writes to Marvin Burton, offering to sell her car for $1,000, and states that the offer is “good for 10 days.” Burton receives the letter on June 5th and mails a letter of acceptance on June 11th. Bristol receives the acceptance on June 14th and claims that no valid contract exists. Is she correct? Explain.

No, she is NOT correct. When an offer is made by mail, the acceptance is binding as soon as it is sent. She must sell the car, or suffer the consequences of “breach of contract”.

Do NowWholesale Coal Company Made a valid offer, ordering 25

carloads of coal from Guyan Coal Company. Guyan’s written reply stated “you can be sure that if it is possible to ship the entire 25 carloads, we will do so. Under the circumstances, this is th best we can do.”

Only seven carloads were shipped. WCC refused to pay until all 25 loads were shipped. Guyan sued, and WCC responded by countersuing for the 18 carloads not received.

Was there a valid contract for 25 loads of coal?

Guyan Cola Company v. Wholesale Coal Company, 201 N.W. 194 (Michigan)

Do Now answer

No, there was not a contract for 25 loads of coal. There was a contract for 7.

The acceptance was not in accord with the offer (mirror image rule), therefore there was a qualified acceptance. This constituted a counteroffer, which WCC accepted by taking delivery of the 7 carloads of coal. They could have rejected the offer by refusing to accept the delivery.