Question

Clinton, a vintage clothing retailer, sent the following letter to Stacy on January 3: “I promise to sell you my collection of rare vintage Victorian hats for $15,000.  This is a firm offer that will be open until January 17 and will not be withdrawn before that date.” Stacy received the offer on January 5.

          On January 8, Clinton changed his mind and decided he did not want to sell the hats.  He sent a letter to Stacy, which she received on January 11, in which Clinton stated that he was withdrawing his offer.

          On January 12, Stacy sent a letter to Clinton, accepting his offer.  Due to delays in the mail, Clinton did not receive this letter until January 19.  When Stacy went to Clinton’s store on January 21 to pay for the hats and arrange for delivery, Clinton said there was no contract and refuses to take payment or give the hats to Stacy.

1. In an action by Stacy against Clinton for breach of contract, judgment for whom?  Explain.
2. Assume that Stacy wins the breach of contract action.  If Stacy wants the hats rather than damages, what remedy should she ask for?  Explain.

Answer 1

Judgement for Stacy.

Since the offer made by Clinton was a firm offer and irrevocable till Jan 17 as was said in the writing by him , he can not revoke offer as per the law. So the acceptance by Stacy on 12th January is valid and makes a contract with Clinton. If clinton is not performing under the contract with stacy ,he is in breach and therefore , Stacy would prevail.

Specific performance is the remedy that Stacy would be seeking in this situation.

Stacy may ask the court for specific performance whereby clinton would be required to perform his duties as per the contract that he breached I.e. delivering the vintage caps.