Question

James is an antique dealer and on a Saturday in November 2007 he put a vase in the window of his shop with a sign which stated 'exceptional piece of 19th century pottery - on offer for $5000'. Ben happened to notice the vase as he walked past the shop and thought he would like to have it. Unfortunately, as he was late for an important meeting, he could not go into the shop to buy it, but as soon as his meeting was finished he wrote to James agreeing to buy the vase for the stated price of $5000. The letter was posted at 11.30 am. Later on the same day, Bill visited James's shop and said he would like the vase but was only willing to pay $4000 for it. James replied that he would accept $4500 for the vase, but Bill insisted that he was only willing to pay $4000 and left the shop. However, on his journey home Bill realised that $4500 was actually a very good price for the vase and he immediately wrote to James agreeing to buy it for that price. His letter was posted at 12.30 pm. Just before closing time at 5 pm, Di came into James's shop and she also offered to buy the vase for $4000. This time James agreed to sell the vase at that price and Di promised to return on the following Monday at 11.00 am with the money. On the Monday morning James received both of the letters from Ben and Bill before Di arrived to pay and collect the vase. From the point of view of the law of Contract, advise James as to his legal relations with Ben, Bill and Di.

Answer 1

As per Law of contract , James has legal relationship with Di only as per 2-207(1) Uniform Commercial Code ("UCC") , there should be definite expression of offer and acceptance from both party.

Only Di has offer and acceptance with James till 11.00 am of Monday, James can't accept any offer of buy ( Ben or Bill) before agreed time with Di of 11 am.

James is free to accept any offer to buy from any party after the deadline time.