Four months later, when the price of cotton had doubled, Loeb & Co. sought to enforce the contract. Is the contract enforceable?
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Schreiner, a cotton farmer, agreed over the telephone to sell 150 bales of cotton to Loeb & Co. Schreiner had sold cotton to Loeb & Co. for the past five years. Written confirmation of the date, parties, price, and conditions was mailed to Schreiner, who did not respond to the confirmation in any way. Four months later, when the price of cotton had doubled, Loeb & Co. sought to enforce the contract. Is the contract enforceable? |
Explanation
Individual S is a farmer and not a merchant. Because of this reason, Individual S must give an acceptance to the offer made to be held liable for a contract. However, Individual S did not give any acceptance to Company L's offer to sell Commodity C, which makes Individual S free from any liability against the contract.
Verified Answer
The judgment will be in favor of Individual S as Individual S is not a merchant and had not given acceptance to the offer made by Company L, thereby making the contract unenforceable under the law.
