Question

BUSINESS LAW 1-CONTRACTS

Use the following facts to answer Questions 8 through 17

Tommy Tarleton needs a new car. He currently owns a mega monster truck that he bought when he was making bank as a hand model, but that work dried up after an unfortunate table saw accident that he’d rather not talk about. Without his modeling work, he can’t afford gas for his truck. What’s more, he doesn’t have much cash on hand, and his credit is shot. Having little other choice, he drives down to a local used car lot, a crummy little spot called Big Tex’s Car Shack, where Big Tex “stacks ‘em deep and sells ‘em cheap.”

When Tommy gets on the lot, Big Tex himself helps Tommy. After Tommy and Big Tex trade pleasantries, the following conversation occurs:

Statement 1 (Big Tex): “So Tommy – it’s okay if I call you Tommy isn’t it? What can I do for you today?”

Statement 2 (Tommy): “I’m thinking about buying that bright red Ford Fiesta over there.”

Statement 3 (Big Tex): “Oh yeah? Well, she’s a real beauty. Owned by a little old lady. She only drove it to church on Sundays. Never been wrecked, and it only has 25,000 miles on it.”

Statement 4 (Tommy): “That sounds great. I absolutely do not want to buy a car that has been in a wreck.”

Statement 5 (Big Tex): “So waddaya think Tommy? Would you give me $5,000 for her?”

Statement 6 (Tommy): “Would you take $4,000?”

Statement 7 (Big Tex): “I couldn’t do $4,000, but I will take $4,500 for her.”

Statement 8 (Tommy): “Would you consider taking $4,000 if I trade in my mega monster truck too?”

Statement 9 (Big Tex): “No. With gas prices on the rise, I’d have trouble selling it.”

Statement 10 (Tommy): “I understand, but I won’t give you $4,500 for it. It’s not worth that much.”

Statement 11 (Big Tex): “I’ll take $4,400 for her, but that’s the best I can do.”

Statement 12 (Tommy): “I’ll give you $4,250.”

Statement 13 (Big Tex): “You drive a hard bargain Tommy. I like that. Reminds me of me. You’ve got a deal.”

15.       Assume for purposes of this question only that Statement 7 constitutes a valid offer. Another customer on the lot overhears Statement 7 and jumps in front of Tommy and tells Big Tex, “I accept your offer.” Has mutual assent occurred between Big Tex and this other customer?

            a. Yes, because the other customer accepted Big Tex’s offer.

b. Yes, because Big Tex didn’t revoke the offer before the other customer accepted it.

            c. No, because the offer was not made to the other customer.

d. No, because Tommy had not had a reasonable opportunity to reject the offer before the other customer accepted it.

Answer 1

The answer will be d.

As the offer was first made to Tommy and till he not reject the proposal no one else can enter into the deal.

This is as simple that if two people are interested to do a deal, and bargain activity is going on . the product holds the opportunity to the bargainer till either of the parties finally close the bargain.

In this case, either of the two parties has no made a final offering till statement 7 . For the entry of the third party it necessary that Tommy or Tex would close the deal with a final offering.