Kenny sent a letter to Elvis offering to sell to Elvis his second-hand car for $100,000. The price was a reasonable one for a reasonably common car such as Kenny’s one. Elvis promptly posted a letter back to Kenny accepting his offer. Elvis heard nothing further. A few weeks later, Elvis received a phone call from Kenny who told Elvis that, because he had not had a reply from Elvis, he had sold the car to somebody else. In the conversation that followed, Kenny told Elvis that he had not received Elvis’s letter.
Advise Elvis whether he can claim damages from Kenny. If yes, how much he is likely to recover?
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- Kenzzz_chLv 71 decade agoFavorite Answer
The words "reasonable price" aren't there for no reason. You should think: why are they there?
The first issue is whether Kenny's letter constitutes an offer. His letter has to contain certain and reasonable terms to be regarded as an offer. Otherwise it may be regarded as merely an invitation to treat. Since $100,000 was said to be a reasonable price, we can treat Kenny's letter as an offer.
The next issue is whether acceptance has been communicated. I think Gary is mistaken on this point; this is clearly a question relating to the postal acceptance rule. According to the postal acceptance rule, an offer is accepted by the offeror as soon as the offeree posted the letter. Even if the letter has never been received, the position of the law is that acceptance has been communicated. Therefore, Elvis has communicated his intention to accept the offer to Kenny by posting the letter promptly.
Therefore, there is a valid contract between Kenny and Elvis and hence Elvis can claim damages from Kenny for breach of contract.
- GaryLv 71 decade ago
Unlikely because the contract need three elements: offer, acceptance, and condition.
Techically Kenny did not accept the offer because he has not received any further communcation. Unless you can prove that there is some sort of agreement (such as call to Kenny that I take your offer or such) or proof of mailing. Otherwise, Kenny does not have to the olibation to fulfill because there is no acceptance.