Question

Mira offered to sell Peter a parking lot for $75,000. The offer was in writing and signed by Mira and provided that any acceptance by Peter must be made within five days. On the fourth day, Mira accepted a better offer from Dean and transferred the parking lot to Dean on that day. Unaware of this sale, Peter telephoned Mira on the fifth day and accepted Mira’s offer. Peter sues Mira for breach of contract. Was a valid contract created between Peter and Mira? Explain.

Answer 1

Yes the contract between Mira and Peter is valid as it is in writing and both have accepted the terms of the contract.It has the consent of both the parties , a price decided , time is given for consideration and is in writing and hence is a valid contract. Mira signed the document and hence she needs to wait for the 5 days given to Peter to complete and if he did not reply after those 5 days, only then Mira can go for another offer. She is bound to wait and give the property to Peter if he agrees to the contract before those 5 days. Hence their contract is valid and Mira is bound to it.