Question
The owner of ABLE Co. a manufacturing factory that uses titanium bolts in making its products and a titanium bolt supplier entered into negotiations over
The owner of ABLE Co. a manufacturing factory that uses titanium bolts in making its products and a titanium bolt supplier entered into negotiations over the telephone and, after a time, reached a general understanding that the ABLE would buy titanium bolts from the supplier. Following their conversation, the titanium bolt supplier sent ABLE a contract, which he had already signed, agreeing to sell 30,000 titanium bolts to the ABLE for a total contract price of $40,000. Upon receipt of the contract in the mail, an authorized ABLE representative signed the contract and deposited an envelope containing the contract in the mailbox located in front of his workplace. Before the titanium bolt maker received the contract, ABLE had a change of circumstances due to the Covid-19 slow down. The ABLE representative telephoned the titanium bolt maker and told him that he could not afford to buy the titanium bolts he had ordered, and he was not interested in that contract we talked about. The titanium bolt maker replied, Thats all right, I understand. Maybe we can do business some other time. The next day, the signed contract was delivered to the titanium bolt makers office. The titanium bolt maker, also having had a change of mind, decided that he wanted to enforce the contract. Is the contract enforceable against ABLE?
a. Yes, because the acceptance occurred prior to rejection.
b. Yes, because of the doctrine of promissory estoppel.
c. No, because the offer to rescind was accepted and that discharged the original contract.
d. No, because the rejection by telephone voided the acceptance by mail.
e. No, because of Covid-19, commercial impracticability would be a defense to performance.
Identify the legal issue that must be answered.
2. Identify the case, code, legal principle that applies.
3. Interpret the facts based on the legal question and rule that are at play.
4. Decide how a court would likely rule.
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