Business Law Sales Contracts

Sales Contracts

Ronick Weatherly

Grantham University

Eric Wicks

BA 265 Business Law II

12/19/2013

On September 1, Jennings, a used-car dealer, wrote a letter to Wheeler in which he stated, “I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500 at any time before October 9. [Signed] Peter Jennings.” By September 15, having heard nothing from Wheeler, Jennings sold the Thunderbird to another party. On September 29, Wheeler accepted Jennings’s offer and tendered $13,500. When Jennings told Wheeler he had sold the car to another party, Wheeler claimed Jennings had breached their contract. Is Jennings in breach? Explain.

First, according to our textbook, the UCC defines a merchant as a person who deals in goods of the kind involved in the sales contract or who, by occupation, holds him or herself out as having knowledge and skill unique to the practices and goods involved in the transaction (Roger Leroy Miller, 2011, 2008). Jennings, a used car dealer is definitely a merchant.

By writing a letter to Wheeler with a stipulating time frame, and his official signature, Jennings made a firm offer. A firm offer is described as offer by a merchant that is irrevocable without consideration for a period of time (not longer than three months). A firm offer by a merchant must be in writing and must be signed by the offerer. Both of these requirements have been met by Jennings making this firm offer a valid contract until at least October 9th.

By stating he had the car and that he would sell it to Wheeler at any time before October 9th, Jennings made a firm offer. The definition of a firm offer is that when a merchant offerer gives assurances in signed writing (which happened here)...