Does a contract exist between Acorn and Bowman? Explain.
On November 23, Acorn, a dress manufacturer, mailed to Bowman a written and signed offer to sell one thousand sundresses at $50 per dress. The offer stated that it would “remain open for ten days” and that it could “not be withdrawn prior to that date.” Two days later, Acorn, noting a sudden increase in the price of sundresses, changed his mind. Acorn therefore sent Bowman a letter revoking the offer. The letter was sent on November 25 and received by Bowman on November 28. Bowman chose to disregard the letter of November 25; instead, she happily continued to watch the price of sundresses rise. On December 1, Bowman sent a letter accepting the original offer. The letter, however, was not received by Acorn until December 9, due to a delay in the mails. Bowman has demanded delivery of the goods according to the terms of the offer of November 23, but Acorn has refused. Does a contract exist between Acorn and Bowman? Explain.
Individual A made an offer to Individual B, which cannot be taken back by Individual A up till 10 days of making the offer. Consequently, the withdrawal of the offer after 2 days by Individual A will be invalid, and the acceptance by Individual B of the original offer within 10 days results into a valid contract between Individuals A and B.
There is a valid contract between Individuals A and B. The offer made by Individual A was accepted by Individual B within the time frame, which restricts Individual A to take the offer back.