Question
After displaying his designs at an international fashion show, Yves was flooded with orders for his shirts. In January, Yves posted bid specifications for the
After displaying his designs at an international fashion show, Yves was flooded with orders for his shirts. In January, Yves posted bid specifications for the shirts on his website, stating that the successful bidder "must be able to produce all the shirts that I need, and fast."
Garment's V.P. of Sales, Taylor, e-mailed Yves, indicating that Garment could provide up to 1,000 shirts per month at $15.00 per unit including delivery, with the first shirts arriving in 30 days. Yves e-mailed Taylor, stating that he couldn't wait that long, and that he couldn't work with a 1,000 shirt per month limit.
Taylor e-mailed Yves, indicating that she could meet Yves' quantity requirements and that the first shirts would be delivered in 10 days, but that the price would be $20 per shirt. Yves e- mailed Taylor, informing her that, with the exclusive distribution deal that he had made with Stuff-Mart, he couldn't afford to pay more than $10.00 per unit.
Taylor e-mailed Yves, stating that Garment could meet Yves' price, but only with a guaranteed minimum of 2,000 shirts per month for 12 months. Yves sent Taylor an e-mail that read "Deal." Later that same day, Taylor filled out Garment's standard order form with the terms of their agreement, signed it, and mailed it to Yves.
From February through May, Garment provided Yves with 5,000 shirts per month. At the beginning of June, Stuff-Mart notified Yves that sales had dried up for his shirts, and that they would not be ordering any more shirts. When Yves notified Taylor that he wouldn't be ordering any more shirts, Taylor replied that Yves was committed to buying at least 2,000 shirts per month for the next 8 months.
If Garment sues to enforce its contract with Yves, what will the result be and what defenses (if any) could Yves raise? Discuss
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