Contract Questions

The following day lemon received martins acceptance

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Unformatted text preview: in offering to sell Martin a ranch for $80,000 cash. Lemon’s letter indicated that the offer would remain open until February 15 if Martin mailed $100 by January 10. On January 5, Martin mailed $100 to Lemon. On January 30, Martin telephoned Lemon stating that she would be willing to pay $60,000 for the ranch. Lemon refused to sell at that price and immediately placed the ranch on the open market. On February 6, Martin mailed Lemon a letter accepting the original offer to buy the ranch at $80,000. The following day, Lemon received Martin’s acceptance. At that time the ranch was on the market for $100,000. Which of the following is correct? a. Martin’s mailing of $100 to Lemon on January 5 failed to grant an option. b. Martin’s call on January 30 automatically terminated the January 1 offer. c. Placing the ranch on the market constituted an effective revocation of the offer of January 1. d. Martin’s letter of February 6 formed a binding contract based on the original terms of Lemon’s January letter. 349. On July 1, Silk, Inc., sent Blue a telegram offering to...
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This test prep was uploaded on 03/29/2014 for the course BUL 3130 taught by Professor Schupp during the Fall '12 term at UNF.

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