Myra owns a house, which she advertises for sale for $400,000. On May 1, Nico offers Myra $380,000 for the house. On May 5, Myra has delivered to Nico at his office a form that includes additional terms but does not state a price. At 9 a.m. on May 6, Nico signs the form and gives it to Odell, his administrative assistant, with instructions to mail it. At 10 a.m., Myra calls to tell Nico that the deal is off. The next day, Odell mails the signed form to Myra. When she refuses to sell the house to Nico, he files a suit against her, alleging breach of contract. Myra claims that there was no contract. What are arguments supporting each party's position? What is the court likely to rule? Explain.

Question

What will be an ideal response?

Answer 1

Nico might assert his intent to accept, and point to his signature on Myra's form as proof of the assertion. Nico might claim that he accepted Myra's counteroffer (including the additional terms) before it was revoked. Nico might argue that he put his acceptance into the "stream of commerce," or the "route of response," or the "transmission of delivery," or some similar phrase, when he gave it to Odell, his administrative assistant. Myra might contend that there was no contract, because Myra revoked the offer before the acceptance was received. Myra might argue that Nico did not place his acceptance into any "mode of dispatch" because Nico could still control the form¾he had only given it to his administrative assistant, who did not mail it until the next day, long after Myra had revoked the offer. The court would most likely agree with Myra and hold that the acceptance was not effective. Nico still controlled this acceptance at the time that Myra revoked the offer. Nico's mailed acceptance was too late.