ANSWERS TO PROBLEMS CHAPTER 10
Ames, seeking business for his lawn maintenance firm, posted the following notice in the meeting room of the Antlers, a
local lodge: “To the members of the Antlers—Special this month. I will resod your lawn for two dollars per square foot
using Fairway brand sod. This offer expires July 15.”
The notice also included Ames's name, address, and signature and
specified that the acceptance was to be in writing.
Bates, a member of the Antlers, and Cramer, the janitor, read the notice and became interested. Bates wrote a letter to Ames
saying he would accept the offer if Ames would use Putting Green brand sod. Ames received this letter July 14 and wrote to
Bates saying he would not use Putting Green sod. Bates received Ames's letter on July 16 and promptly wrote Ames that he
would accept Fairway sod. Cramer wrote to Ames on July 10, saying he accepted Ames's offer.
By July 15, Ames had found more profitable ventures and refused to resod either lawn at the specified price. Bates and
Cramer brought an appropriate action against Ames for breach of contract. Decisions on the claims of Bates and Cramer?
Ames wins both cases. The first letter from Bates was not an acceptance
because it did not correspond with the terms of the offer.
It was a counteroffer, as it called for
Ames to use a different brand sod, and therefore constituted a rejection of the original offer which
terminated the original offer.
After Ames had rejected the counteroffer, Bates wrote on July 16 an
acceptance of the original offer.
This failed to form a contract as the original offer had been
terminated by (a) the rejection, Restatement, Second, Contacts, §38 and (b) expiration of the time
for acceptance as by its terms it expired July 15, Restatement, Second Contracts, §41.
Cramer cannot recover because he was not an offeree.
The offer was addressed to members of the
The party making an offer has the right to determine with whom he will contract.
immaterial whether the offeror had special reasons for contracting with the offeree rather than with
Cramer made an offer to Ames through his letter, which Ames could have accepted, but chose not
Garvey owned four speedboats named Porpoise, Priscilla, Providence, and Prudence. On April 2, Garvey made written
offers to sell the four boats in the order named for $4,200 each to Caldwell, Meens, Smith, and Braxton, respectively,
allowing ten days for acceptance. In which, if any, of the following four situations described was a contract formed?
(a) Five days later, Caldwell received notice from Garvey that he had contracted to sell Porpoise to Montgomery. The next
day, April 8, Caldwell notified Garvey that he accepted Garvey's offer.
(b) On the third day, April 5, Meens mailed a rejection to Garvey which reached Garvey on the morning of the fifth day. But