Question
ACLS Radio Station faxed the following correspondence to a number of businesses on February 10, 2019: Please provide your best price for the supply and
ACLS Radio Station faxed the following correspondence to a number of businesses on February 10, 2019: Please provide your best price for the supply and installation of 50 radio transmitters at our St. John's office. Please HAND DELIVER your reply to our office located at 123 James Lane no later than 5 pm, March 30, 2019. On March 1, 2019, Boom Box Suppliers Limited hand delivered the following letter to ACLS Radio Station: Further to your letter of February 10, 2019, we would be happy to supply the transmitters you require at a price of $100.00 per unit, installation costs included. On March 20, 2019, Mr. Fox, the owner of Boom Box Ltd., discovered a grave error had been made in the calculation of the price for the supply and installation of the transmitters. In fact, he discovered that the price quoted was for supply only, and that the installation costs would be a further $25.00 per unit! On March 21, 2019, Mr. Fox faxed a letter to ACLS informing them of the error, and quoting the adjusted price. On March 31, 2019, ACLS informed Boom Box that their proposal of March 1, 2019 had been accepted as it was the best price received. On April 1, 2019, Mr. Fox called ACLS informing them that their had been a change in his proposal of February 28, and inquiring as to whether or not they had received his fax dated March 21, 2019. ACLS is now suing Boom Box arguing that they must supply and install the transmitters for $100.00 per unit. ACLS states that Mr. Fox did not follow the proper procedure for communicating his changed proposal (even though they had received Mr. Fox's fax of March 21.) Therefore, a binding contract came into existence when ACLS accepted Boom Box's original offer on March 31, 2019. Will ACLS be successful? Explain, citing case law.
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