Southworth p was approached by d neighbor for first

- Southworth – P was approached by D,
neighbor, for first time to discuss selling his
land. P received letter w/specific terms to
sell. P accepted. Court said there was an
offer. P wins. 269
RULE: look at context. Possible for neighbor
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3. class offerree
4. definiteness of proposal
to make serious offer terms are specific.
Setting is not social. In rural area this is
normal way of conducting business.
- Bretz -bretz offered to buy stock. PGE
responds w/revised offer and asks Bretz to
resubmit (includes “request is subject to
management approval”). NO contract –
asking a party to resubmit is not acceptance,
but rather implying PGE was receptive to
looking at new offer. Entered into contract
w/3 rd party BEFORE PGE received letter
therefore no estoppel. D wins. 275
RULE: asking a party to resubmit an offer is
not acceptance. Promissory estoppel not
enforceable if relied on before receiving
what party thought was acceptance.
Auction – all presumed to be
w/reserve unless stated
otherwise.
w/reserve – can be w/drawn
w/out reserve – sells to
highest bidder (and can’t be
owner or owner’s agent)
UCC -2-328(3)
Shill bidding – phony bids to
drive up prices.
UCC 2-328 Sale by Auction.
(1) In a sale by auction if goods are put up in
lots each lot is the subject of a separate sale.
(2) A sale by auction is complete when the
auctioneer so announces by the fall of the
hammer or in other customary manner. Where
a bid is made while the hammer is falling in
acceptance of a prior bid the auctioneer may in
his discretion reopen the bidding or declare the
goods sold under the bid on which the hammer
was falling.
(3) Such a sale is with reserve unless the
goods are in explicit U put up without reserve.
In an auction with reserve the auctioneer may
withdraw the goods at any time until he
announces completion of the sale. In an
auction without reserve, after the auctioneer
- Equitable Life Assurance – property to be
sold at auction (w/reserve). Message to stop
auction received before the gavel went
down. No sale. P wins. UCC 2-328(3). 279
RULE: may w/draw sale at auction with
reserve up until gravel goes down.
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calls for bids on an article or lot , that article or
lot cannot be withdrawn unless no bid is made
within a reasonable time. In either case a bidder
may retract his bid until the auctioneer's
announcement of completion of the sale, but a
bidder's retraction does not revive any previous
bid.
(4) If the auctioneer knowingly receives a bid
on the seller's behalf or the seller makes or
procures such a bid, and notice has not been
given that liberty for such bidding is reserved,
the buyer may at his option avoid the sale or
take the goods at the price of the last good faith
bid prior to the completion of the sale. This
subsection shall not apply to any bid at a forced
sale.