In responding to Discussions and to other students, please be sure to use the course material using in-text citations and a reference list to cite the source(s) used. Please label each paragraph.
(1) Learning Activity #1 for Response to (SR)
No, Sebastian did not have an enforceable contract with Burnie so that Sebastian was obligated to hold the offer open for 5 days while Burnie considered Sebastian’s $400 offer. Both in common law and under the UCC, their contract was valid; however, it would not be enforceable by any court. “The law recognizes 7 different ways offers can expire: by way of revocation, by way of rejection by the offeree, by way of counteroffer, by way of acceptance with counteroffer, by way of lapse of time, death or insanity of a person or destruction of an essential term, and by way of illegality” (Mayer, Warner, and Siedel, 2012). Sebastian had a right to revoke the contract. The $400 offer expired by way of revocation. Although Sebastian agreed to hold the offer open for 5 days while Burnie considered the offer, Sebastian had the ability to revoke the offer before Burnie’s decision to accept.
References
Business Law and the Legal Environment (2012). Washington, D.C.: The Saylor Foundation
(2) Learning Activity #1 for Response to (JP)
Did Sebastian have an enforceable contract with Burnie so that Sebastian was obligated to hold the offer open for 5 days while Burnie considered Sebastian’s $400 offer? Why or why not?
Yes, Sebastian had an enforceable contract although it was verbal. A contract in the most general sense is an offer and an acceptance, regardless of how it was presented, i.e. written or verbal. Burnie requested to have the offer open for 5 days while he thought about it and Sebastian agreed, this is the offer and acceptance. Sebastian sold it the next day at a higher price meaning he breached the verbal contract. Depending on the state, there are certain statute of fraud that cover the Uniform Commercial Code for sales (HG.org, n.d.). For instance, contracts with sales that are over $500 MUST be in writing in state x.
