On September 1, Jennings, a used-car dealer, wrote a letter to Wheeler in which he stated, "I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500 at any time before October 9. [Signed] Jennings." By September 15, having heard nothing from Wheeler, Jennings sold the Thunderbird to another party. On September 29, Wheeler told Jennings that he accepted the offer and tendered $13,500. When Jennings told Wheeler he had sold the car to another party, Wheeler claimed Jennings had breached their contract. Is Jennings in breach? Explain.

Question

What will be an ideal response?

Answer 1

Yes. Under UCC 2-205, a merchant offeror, who in a signed writing gives assurance that an offer will remain open, creates an irrevocable offer (without payment of consideration) for the time period stated in the assurance up to a three-month period. Jennings, as a merchant, was obliged to hold the offer (which had been made in a signed writing¾the letter) open until October 9. Wheeler's acceptance of the offer prior to October 9 created a valid contract, which Jennings breached when he sold the Thunderbird to a third party.