The Silver Mining Company decided to sell of two of its less productive mines, the Blue Lake mine and the Silver Lake mine, and authorized the company president to find a buyer. On June 10, the president wrote a letter to the Amalgam Mining Corporation offering to sell the two properties for $3,000,000.

On June 22, Amalgam Mining Corporation replied by mail to the letter in which it expressed an interest in the purchase of the Blue Lake mine at a price of $2,000,000 if Silver Mining Company was prepared to sell the properties on an individual basis.

On June 28, the president of Silver Mining Company replied by fax that he would prefer to sell both properties, but if he could not find a buyer for the two parcels within the next few weeks, the Company might consider selling the properties on an individual basis.

On July 6, the Amalgam Mining Corporation made an inquiry by fax to determine if Silver Mining Company had decided to sell the properties on an individual basis. The president of Silver Mining Company responded with a fax which stated that it was still looking for a buyer for both properties.

Following this response, Amalgam Mining decided to examine property the Silver Lake mine, and sent out its two geologists to do brief site evaluation.

On July 12 they reported back to say that they had examined the mine, and from company core samples, found what might be a potentially economic ore body worth between 10 and 30 million dollars. Amalgam Mining then prepared a letter accepting the offer of Silver Mining Company to sell both properties for $3,000,000. The letter was mailed on July 15.

On July 16 the president of Silver Mining Company found a buyer for the Silver Lake mine at a price of $1,200,000, and signed a sale agreement the same day. He then wrote a letter to Amalgam Mining in which he accepted their offer to buy the Blue Lake mine for $2,000,000. The president of Silver Mining Company received the July 15 letter of Amalgam Mining on July 17.

Discuss the issues raised in this case, and indicate in your answer how the case might be decided if it was brought before the court.