BUSINESS LAW

On August 1, Donna, a jeweler called Olivia and offered to sell Olivia a diamond ring for $10,000. Olivia was very interested and asked Donna if she would promise to keep the offer open until September 1. Donna, who was anxious to sell the ring, signed and mailed the following letter to Olivia, which Olivia received on August 2: "I, Donna, do hereby offer to sell Olivia my diamond ring for $10,000 and I promise this offer will be held open until September 1 and will not be withdrawn before that date." On August 15, having not heard back from Olivia, Donna sold the ring to Madeline for $15,000. On August 16, Donna sent Olivia a letter in which Donna stated that she was revoking her offer because she sold the ring to Madeline for a better price. Olivia received this letter on August 18. Olivia ignored Donna's letter of August 16, and on August 20, sent a letter to Donna accepting Donna's original offer. Due to a delay in the mail, Donna did not receive this letter accepting her original offer until September 3. Donna immediately calls Olivia to tell her that there is no contract because she revoked the offer and already sold the ring to Madeline.

a. Olivia sues Donna for breach of contract. Judgment for whom? Discuss, explaining the significance of each communication and action above.

b. Assume instead of the facts in the second paragraph, Donna's letter states, "I Donna, do hereby offer to sell Olivia my diamond ring for $10,000 and this offer will expire on September 1." Would this change your answer to part (a)? Explain

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