Question

Acceptance Michael Smith, Judy Olsen, Kristy Johnston, and their mother owned interests in seventy-eight acres of real property in Montana. When their mother died, she left her interest in the property to Kristy Johnson. Kristy wrote letters to Judy and Michael, offering to sell her own interest to Judy or Michael. Kristy's letter dated July 6 said, "if you want to accept my offer, you must only send it in writing by U.S. mail. Whoever accepts first gets my interest in the land." On July 10, Judy deposited a written acceptance of all the terms in Kristy's offer in the U.S. mail. On July 11, before Judy's written acceptance reached Kristy, Michael telephoned Kristy to enthusiastically accept her offer to sell her interest in the land. Did Judy and Kristy have an enforceable binding contract? Or did Michael's acceptance create an enforceable contract when it was heard by Kristy? Discuss. After the death of Michael Smith, Judy Olsen, and Kristy Johnson's mother, ("Judy, Olsen, and Kristy Johnston", Kristy Johnston, Judy Olsen, Michael Smith, or all three siblings) owned interests in the seventy-eight acres of property.

2. What was their relationship? (friends or relatives)

3. (Kristy, Judy, or Michael) is the offeror.

4. A valid offer requires an intent to be bound. Did Kristy intend to be bound?(Yes or No)

5. A valid offer requires definite terms. Did the parties know the property offered? (Yes or No)

6. A valid offer requires communication. Was Kristy's offer communicated to Judy and Michael? (Yes or No)

7. Kristy communicated her offer to Judy and Michael through (letters, phone calls, or e-mails)

8. Were Kristy's offers to sell her property interest to Judy and Michael valid offers? Yes or No)

9. In what manner can a party accept an offer? (words, conduct or both)

10. What type of acceptance was required here? (promise or performance)

11. The type of contract in this case is a (unilateral or bilateral) contract.

12. (A person to whom the offer is made or A person who makes the offer) can accept an offer.

13. Who could accept Kristy's offer to sell? ("Judy or Michael", Judy, or Michael)

14. Once an offer is accepted, a (valid binding contract, void contract, or voidable contract) is created.

15. Did Judy unequivocally accept the offer? (Yes or No)

16. By what means did Judy unequivocally accept the offer? (telephone, email, or U.S. mail)

17. By what means did Michael unequivocally accept the offer? (telephone, email, or U.S. mail)

18. Did Judy's reply satisfy the mirror image rule? (Yes or No)

19. Did Judy use the proper mode of acceptance? (Yes, No, or Maybe)

20. Did Michael's reply satisfy the mirror image rule? (Yes or No)

21. Did Michael use the proper mode of acceptance? (Yes, No, or Maybe)

22. In regard to Judy's acceptance, the (delivery, transmission, or mailbox) rule applies.

23. Since the mailbox rule applied, when did Judy's acceptance take effect? (When the acceptance was deposited in the U.S. mail, When Kristy received the acceptance in her mailbox, or When Kristy opened the letter and read the acceptance)

24. According to contract law who accepted Kristy's offer first? (Judy or Michael)

25. Did Judy form a contract with Kristy? (Yes or No)

Answer 1

1. All three siblings

2. Relatives

3. Kristy

4. Yes

5. Yes

6. Yes

7. Letters

8. Yes

9. Both

10. Promise

11. Bilateral

12. A person to whom the offer is made

13. Judy or Michael

14. Valid binding contract

15. Yes

16. U.S. mail

17. Telephone

18. Yes

19. Yes

20. Yes

21. No

22. Mailbox

23. When the acceptance was deposited in the U.S. mail

24. Judy

25. Yes

Answer 2

As per Kristy Johnson's letter where she mentioned the clauses of the acceptance of offer, she clearly mentioned that she will consider a response only if it is in written form and is sent through US mail.

Now Judy did as per the clauses and sent her a written acceptance through US mail whereas Michael telephoned her and let her know of her acceptance. If Kristy is adamant on her terms that she clearly mentioned in her letter to both and will stick to her word, then technically, it is Judy's fair right on the Montana interests whereas Michaels telephone call will be discarded as it did not fulfill the terms.

Kristy Johnston owned interests in the seventy-eight acres of property after mother's died.

2. Relatives

3. Kristy is the offeror.

4. Yes

5. Yes

6. Yes

7. Kristy communicated her offer to Judy and Michael through letters.

8. Yes

9. In words

10. Promise

11. Bilateral

12. A person who makes the offer can accept an offer

13. Judy or Michael

14. valid binding contract

15. Yes

16. U.S. mail

17. Telephone

18. Yes

19. Yes

20. No

21. No

22. Mailbox

23. When the acceptance was deposited in the U.S. mail

24. Judy

25 . Yes