Question

: Lisa owned and advertised for sale vacant lot A for $100,000. On February 15, Max gave Lisa a signed written offer to buy lot A for $70,000. On February 17, Lisa gave Max a written counter offer stating that she would accept $80,000 for lot A, but Max needed to accept this counter offer on or before March 1. On February 20, Lisa, without receiving a response from Max to her February 17 counter offer, gave Max another written counter offer stating that she would accept $85,000 for lot A, but Max had, again, only until March 1 to accept this counter offer. On February 22, Max gave Lisa another written offer to buy lot A for $75,000. Lisa did not respond to this offer by Max. On February 25, Max called Lisa stating that he agreed to accept her February 17 counter offer for lot A for $80,000. Max also mailed Lisa a countersigned copy of Lisa’s written counter offer along with a $10,000 deposit check. Lisa accepted this check but she eventually wrote “VOID” on the check instead of cashing it. On March 1, Lisa contacted Max advising him that she was not going to sell him lot A and Max responded that he would file a lawsuit against her. On March 2, Lisa sold lot A for $100,000.

1. Do Lisa and Max have a contract? (Hint: answer this last)

2. Which law applies Common Law or UCC?

3. Lisa advertised Lot A for Sale. Is this an offer? Why?

4. February 15 written communication from Max to Lisa to buy Lot A for $70,000. Is this an offer? Was there acceptance? Why?

5. February 17 counteroffer from Lisa to Max accepting $80,000 for lot A if Max accepts this offer by March 1. February 20 second counteroffer from Lisa to Max ($85,000 by March 1) without any response from Max. Can Lisa do this? Why?

6. February 22 written communication from Max to Lisa to buy Lot A for $75,000. What is this? What does that mean?

7. Max's acceptance on February 25 of Lisa's offer to buy Lot A for $80,000. What is this? What does that mean?

8. Does Lisa have any defenses?

9. What if Lisa cashed the check, is there a contract?

10. If Lisa cashed the check, what type of remedy would Max be entitled to: Reliance, Restitution, Expectation, or Specific Performance? Why?

Answer 1

1. There may not be a contract in between there, advertisements are really not any offer but it can be considered as invitation for a buyer to make an offer.The offers made on February 17^th and 20^th by Lisa is rejected by Max through a counter offer on February 25^th. Really the term in this is not in clear.

2. The law applied in this is Common Law

3. The advertisements connot be treated as offer.

4. The communication to Lisa by Max on february15th is an offer, and lisa rejected this through a counter offer

5. Lisa have to get acceptance from max by march 1^st,it was stated there in the offer. And she is the master of the offer and can do the counter offer

6. On February 22 Max give a written communication to Lisa is a counter offer and this meant that Max has rejected the offers from Lisa through the counter offers

7. Max accepted that offer but is not a valid because he have rejected through a counter offer on February 22

8. Lissa can claim as insufficient agreement as the terms were not clear.

9. If lisa cashed the checkthen lisa have accepted the contract while a contract was there.

10. If lisa have cashed the cheque then max have to be entitled for the expectation because he is losing a chance of businesses,