Business Law Case Study

Introduction

In this case study, it speaks to the following case and circumstances. A millionaire (Lamar Smunt) solicits the services of a famous portrait artist (Casmir Roginsky) via U.S Mail to paint a portrait of his mother. Mr. Smunt sends Mr. Roginsky a letter offering to pay $500,000.00 to do the painting. Mr. Roginsky sends Mr. Smunt a reply via U.S Mail, stating that he has seen Mr. Smunt’s mother and the only way he will do such a “harrowing project” is for the price of $750,000.00. Shortly after the artist reevaluates his current financial status he phones Mr. Smunt and states that he would be pleased to paint the picture of Mr. Smunt’s mother. Mr. Roginsky further tells Mr. Smunt to destroy the letter he had already sent without reading it and that it was sent by mistake. Smunt disregards Roginsky’s instructions and reads the letter when it arrives. Smunt becomes enraged at the insults Roginsky said about Smunt’s mother and refuses to allow Roginsky to do the portrait. Roginsky files a “Breach of Contract” suit against Smunt.

The following topics are to be explored in the chances of Roginsky’s success:

• Offer and Acceptance

• When Can an offer be accepted and revoked

• The “Mail Box Rule”

• Traditional Acceptance under the Rule & more modern view under the UCC and the Restatement.

An offer is what Mr. Smunt proposed Mr. Roginsky with. Smunt initiated the proposal with a $500,00 bid for Roginsky to do the portrait of Smunt’s mother. An offer is an expression of willingness to contract on certain terms. An offer is made with the intention that it will become binding if the proposed party accepts it. Roginsky initially received the offer and responded with a refusal of the offer. However, Roginsky did make a counter offer to the proposal stating that he would do it for the sum of $750,000.00. It can be argued that Smunt had the option of agreeing or declining the counter offer from Roginsky. At the point of the response from Roginsky...