On May 20, J.W. Worth was visiting his neighbors Joe and Olive Twist when the conversation turned to taxes.Joe stated that he and his wife were considering selling some of their real estate because the taxes were too high.At Worth's request, J.W brought out maps showing where his properties were located.Worth was especially interested in Bear Ranch and asked Joe how much he expected to sell that ranch for, and Joe replied, "for assessed value".As Worth was leaving, Olive promised to send him more information about their land sales.

On June 17, Worth received a letter from the Twists that stated in part, "Enclosed is the information about the ranch sales that we discussed previously."The enclosure read as follows:

Joe and Olive Twist

R.R. 1

Hometown Oregon

Selling Bear Ranch - approximately 2,933 acres in Grant County near Seneca, Oregon, at the assessed market value:

Land:$306,409

Buildings:$18,010

Total:$324,419

Terms available.Buyer pays 25% down, balance over 5 years at 8% interest.Can negotiate sale date.Available after crops harvested and seller removes all equipment.

ALSO selling 250 head of cattle now located on ranch.

Questions based on above Fact Pattern:

a)Assume that on May 20, during his conversation with Joe Twist, Worth had stated "I accept your offer to sell Bear Ranch for the assessed value."Would a contract have been formed at that point?

b)i.Assume instead that on June 21, Worth sent a letter to the Twists stating, "Re Bear Ranch.I accept your offer of June 17."Would a contract have been formed at that point?

ii.Would your answer be different if, during their meeting on May 20, the Twists had told Worth that they would sell the land only if the purchaser also agreed to buy the cattle?

c)Assume that upon receipt of Worth's letter of June 21 (see b. above), the Twists wrote a letter in response that stated in part, "You have misconstrued our prior negotiations concerning Bear Ranch.Our letter of June 17 was not intended as an offer.In fact, we sent similar letter to three other neighbors who are also interested in the property.We are open to further negotiations."Would a contract have been formed on June21?

d)Assume that Worth sent his letter of June 21 but that another neighbor of the Twists sent them a letter on June 21 also stating that they "accepted the offer to sell dated June 17".Both Worth and the neighbor sue the Twists demanding performance of the contract.How would a court resolve the dispute?

e)Assume that upon receipt of Worth's letter of June 21, the Twists agreed that a contract had been formed. What are the terms of the contract?