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Homer, the CEO of Green Leaves (an organic farm business), has been negotiating a contract with Marge, the owner of a fruit shop, for the
Homer, the CEO of Green Leaves (an organic farm business), has been negotiating a contract with Marge, the owner of a fruit shop, for the supply of spinach. Last Tuesday Homer sent the following email: 'Dear Marge, following our previous conversations, we wish to sell you 50 kilos of spinach for $500'. The day after, Marge replied: 'Dear Homer, I wonder whether you would consider payment in instalments.' Homer did not reply. Two days later, Marge decides to accept Homer's offer and replies: 'Ok. I understand - let's do business for $500 upfront'. However, Homer had already sold the spinach to a third party and he refuses to go ahead with the deal. Which one of the following statements is MOST LIKELY CORRECT? Question 13Answer a. There is a contract between Green Leaves and the supermarket: Marge's question regarding instalments was only an invitation to treat. b. There is no contract between Green Leaves and the supermarket: Marge's first response would be regarded as a counteroffer, the effect of which is that the supermarket's original offer lapses. c. There is a contract between Green Leaves and the supermarket: Marge's first response would be regarded as a counteroffer, the effect of which is that the supermarket's original offer lapses. d. There is a contract between Green Leaves and the supermarket: Marge's question regarding instalments was only a request for information
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