ACE Flight Co v. Delta Orbital Works

On September 21, Ace Flight Co. received from Delta Orbital Works a box containing 3 Flying Disks, also inside the box was a note which stated we are asking 24 inch round $2.50, 18 inch round $1.50, 12 inch round $1.00, per 100 ordered. There was no cover letter.

On September 23, Ace wrote to acknowledge receipt of the samples. In its letter Ace advised Delta that it had accumulated quite a stock of Flying Disks and preferred to wait a while "before ordering further", but stated that it might nevertheless be interested if Delta could come down somewhat on the price.

On October 4, Delta wired Ace, We are now asking $2.00 for 24", $1.00 for 18" and $.75 for 12", same as your sample. We have been made an offer of $1.90/24", $.90/18" inch and $.70/12".

On October 15, ACE wired Delta; your wire of October 4 is in our receipt. We accept your offer.

At the time of the wire, the going price for Flying Disks was 24" $2.20, 18" $1.20 and 12" .80.

Delta immediately wired back, Re yours of October 15, we have no deal, sold out.

ACE then purchased Flying Disks on the market for $2.20, $1.20 and .80.respectively.

ACE now brings an action against Delta based on the above facts.

Identify all of the potential issues that might be raised in this case, then discuss each issue and the arguments that might be raised by both sides. Finally, give your opinion on who you think might prevail and why?