Answer to Question #250657 in Management for Bob

Question

On May 20, Cattle rancher Oliver visited Southworth, telling him, I know you're interested in buying the land I'm selling. Southworth replied, Yes, I do want to buy that land, Oliver told Southworth he would determine the value of the property and send that information to Southworth do that he would have notice of what Oliver wanted for the land. On June 13, Southworth called Oliver to ask if he still planned to sell the land. Oliver answered, Yes, and I should have the value of the land determined soon. On June 17, Oliver sent a letter to Southworth listing a price quotation of $324,000. Southworth then responded to Oliver by letter on June 21 stating that he accepted Olivers offer. However, on June 24 Oliver wrote back to Southworth saying There has never been a firm offer to sell, and there is no enforceable contract between us. Oliver maintains that a price quotation alone is not an offer. Southworth claims a valid contract has been made. Who wins? Discuss

Answer 1

An offer cannot be made only based on a price quotation. This is the fundamental norm of Code U. However, in specific circumstances, the price quotation might be regarded as an offer if all the requirements and facts are met. If the request is accepted in this circumstance, it becomes a legally binding contract. Individual 0 was the first to visit Individual S and was aware of the latter's desire to buy the land. Individual 0 agreed to give the pricing quotation as soon as Individual S expressed interest. Individual S also verified Individual O's intention to sell the ground over the phone in one case, and the latter consented. Individual 0 has made their intentions known by sending Individual S a price quotation letter. Taking into account all of the facts, a contract may be created simply by specifying the price. As a result, the verdict will be in favor of Individual S.