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

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 ?

Answer

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.

Answer

There is a contract between Green Leaves and the
supermarket: Marge’s question regarding instalments was only an invitation to
treat.

Answer

There is a contract between Green Leaves and the
supermarket: Marge’s question regarding instalments was only a request for
information.

Answer

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.

Crowdly

Homer, the CEO of Green Leaves (an organic farm business), has been negotiating ...

Хочете миттєвий доступ до всіх перевірених відповідей на learning.monash.edu?