Acme Motor Company (Acme), an automobile dealership that sold new cars, leased premises from its landlord, Oak Realty. In October 1979, fire destroyed part of the leased premises and Acme restored the leasehold premises with its own funds. As a result of the fire, Oak Realty received a $500,000 payment of insurance proceeds from its insurance company. Oak Realty claims that it is entitled to keep the $500,000 insurance proceeds. Acme claims that it is entitled to the $500,000 insurance proceeds. (Presumably the lease is not clear on this issue.) Acme sued Oak Realty to recover the $500,000 of insurance proceeds. On May 7, 1982, 10 days before the trial was scheduled to begin, Oak Realty delivered to Acme a document titled "Offer to Compromise Before Trial," which was an offer to settle the dispute by Oak Realty paying $190,000 to Acme. On May 8, Acme hand-delivered a notice to Oak Realty in which Acme agreed to the amount of the settlement but made it contingent upon the execution of a new lease with an additional five-year term. On May 10, not having heard back from Oak Realty, Acme hand-delivered a notice to Oak Realty accepting Oak Realty's original May 7 settlement offer.

Question: Is there a contract settling the dispute for the $190,000 proposed in Oak Realty's May 7 offer?

Deliverable: Be sure to address the following points in your answer: What is the governing legal principle (also called a 'black letter law'). The 'governing legal principle' in any case is the legal principle that is the key to completing the legal analysis of the problem and leads you to the correct answer. Apply the black letter law to these facts. Based on this, what is your answer to the question?