Sales of Corvette

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  • Topic: Offer and acceptance, Contract, Sales
  • Pages : 3 (775 words )
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  • Published : January 12, 2013
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Sales of a Corvette
South University Online
February 5, 2011

To: Ms Starz, Senior Partner
Date: February 5, 2011
Re: Mr. deCapo purchase of 1965 Corvette Stingray

Did the “I accept” note scribbled on the napkin mailed to Ms. Daughtery create a binding contract between the two parties over the sale of 1965 Corvette Stingray, even though she has not received the acceptance note yet?

Yes this is a binding contract between the two parties. While this may be an unconventional acceptance of an offer, it is still binding contract between our client, Mr. deCapo and Ms. Daughtery.
Ms Daughtery sent our client an offer note on February 13, 2008, selling her 1965 Corvette Stingray for the amount of 25,995 plus all title transfer fees. Approximately thirty days later our client Mr. deCapo sent Ms. Daughtery his acceptance of her terms for the sale of her vehicle with the additional cost for title transfer fees. Our client chose accept her terms, via a note on a napkin and sent in the mail.

The note sent from Ms. Daughtery is in fact a valid offer of sales to Mr. deCapo. It was a simple offer and only asking the price of the car as well as transfer title fee. Once Mr. deCapo accepted the offer it became a binding contract. Even though Ms. Daughtery has not received the acceptance note from our client, according to the mailbox rule once it went into the mail it became a binding contract. There were no stipulations in Ms. Daughtery’s note to a specific timeline, the thirty days it took our client to respond has no bearing. The performance is the means of acceptance in this case under the mailbox rule. The mailed acceptance is a reasonable form to commit to the offer. If our client was responding with a revocation of his offer this would not be acceptable under the mailbox rule. Especially if it was sent after the acceptance was sent. The offer of acceptance would arrive first therefore making it a binding contract between the two parties. In the case...
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