Bmgt 380

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Bob was an owner of a cottage that Dave was a potential buyer. Bob showed the property to Dave and offered to sell the property for $45,000. Bob did not accept the offer right away the only exchanged business cards so at that point no contract was formed between the two parties. After time had passed, Bob mailed an offer to Dave asking for $42,000 instead of the original amount offered. Once Bob mailed an offer to Dave the mailbox rule became in effect. The mailbox rule is an acceptance of an offer completing formation of the contract (p. 232). By Bob sending the offer by mail he authorized the mode of communication to be by mail unless he specified another form of delivery in the offer contract. Under this rule, if the authorized mode of communication is the mail, than an acceptance becomes valid when it is dispatched to the postal service not when the offeror receives it. Because Bob did not specify how the acceptance should be made express authorization does not exist, and Bob and Dave are bounded by the contract once Dave sent the acceptance of the contract. Bob and Dave met the requirements of a valid contract;

• Agreement – Bob and Dave both agreed on the price of $42,000 for the cottage.

• Consideration – Dave promised to pay Bob the price that he offered to sale the Cottage located on Wind Lade.

• Contractual capacity – Both parties have the capacity to enter into a valid contract, neither party was a minor, incompetent or mentally challenged, and intoxicated at the time contract was written.

• Legality – There is nothing in the written agreement that was illegal.

​Bob had given Dave a deadline of July 22nd to accept his offer. Dave responded to the offer on July 20th before the deadline with acceptance of the cottage for $42,000 providing that Bob makes the repairs to the rotted planks. Acceptance is a voluntary act by the offeree that shows agreement to the terms of an offer. The offeree’s act may consist of words or conduct....