Question

*Please respond in essay format, Subject:Business Law*

On July 3rd, Farmer Felix called Paul of Paul's Produce and Fruit Stand and said "I'm thinking of selling my 20 acre yield of golden sweet corn for about $1.00 per dozen ears. It is all harvested and ready for delivery, assuming that I don't decide to give it to the "Save the Pig Foundation" as free feed. Contact by mail, receipt required.

On August 20th, Paul mailed a response to Felix, stating "I am interested in buying 1/2 of your 20 acre yield at $0.55 per dozen. Please deliver to my Fruit Stand on Saturday morning September 24th at 8:00 a.m.

On August 21st, Felix called Paul and stated "My July 3rd offer is revoked; I'm giving the corn to the Pig Foundation."

On August 22nd after Felix received Paul's letter regarding buying the 1/2 of the 20 acre tield at $0.55 per dozen, Felix decided to give the Pig Foundation 10 acres yield and set aside 10 acres for Paul. On September 24th at 7:00 a.m. Felix delivered the 10 acres yield at $0.55 acres per dozen to Paul's fruit stand.

Paul, seeing Felix unload the corn on September 24th stated "What are you doing? I don't want that stinking old decrepit corn now- I thought you gave that junk to the Pig Foundation. Get it out of here!"

Discuss offer and acceptance. Set forth the rules.

Answer 1

According to contract act there should be a formal offer by a party and other party should accept the offer then only contract will be enforced and cam into force. In this case Felix has quoated about selling his corn and Paul made an offer formally to Felix on 20th Aug. At that time Felix did not acccept the offer and on next day called Paul and conveyed his message that his offer was revoked . As Felix didnot accept the offer of Paul the contract was not completed. He has not right to deliver the product and collect amount due from Paul on the pretext that Felix has received letter. The letter reached Felix on Aug 22nd by when Felix has cancelled the offer already.