When Wyman refused to sell the property to him, Zeller brought an action to seek enforcement of the alleged contract. Decision?
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On December 23, Wyman, a lawyer representing First National Bank & Trust (defendant), wrote to Zeller (plaintiff) stating that he had been instructed to offer a building to Zeller for sale at a price of $240,000. Zeller had previously expressed an interest in purchasing the building for $240,000. The letter also set forth details concerning interest rates and loan fees. After receiving the letter, Zeller instructed his attorney, Jamma, to send Wyman a written counteroffer of $230,000 with interest and loan arrangements varying from the terms of the original offer. Jamma sent the written counteroffer as instructed on January 10. On the same day, Jamma telephoned Wyman and informed him of the counteroffer. Subsequently Jamma sent an acceptance of the original offer to Wyman. When Wyman refused to sell the property to him, Zeller brought an action to seek enforcement of the alleged contract. Decision? |
Explanation
A binding contract is the contract wherein the other party accepts the offer but with the new terms and conditions, different from the original offer, this type of offer changes into a counteroffer. To make a binding contract, the new offer must be accepted by the real offeror before its validation.
The involved parties convey orally to the counteroffer in reply to a written offer with different loan arrangements and terms which are different from original offer. No specific form of reply is needed in this case but in general, an offer is required to be a written acceptance, no other configuration is acceptable.
The oral counteroffer is an efficacious refusal. The oral counteroffer leads to a written acceptance, which is immaterial according to Individual W. This is an alleged contract.
Verified Answer
A counteroffer has been made between the parties. Terms and conditions must be strictly adhered to create a binding contract.
Individual J told Individual W in a telephonic conversation on the 10th of Month J of the counteroffer of $230000, the nonacceptance of the original offer.
