Question

WHAT IF THE FACTS WERE DIFFERENT? Assume that Kristy, Judy, and Michael were visiting face to face. During that visit, Kristy makes an offer to sell her property specifically to Michael and says that Michael must reply by email to accept. Judy, who is also visiting, overhears the offer and replies, "I accept your offer. I'll gladly purchase the property." 1. Does Judy have a valid contract with Kristy? (Yes or No)

2. Why wouldn't Judy have a contract? (acceptance only can be given by the person to whom the offer is being made or acceptance can be given by anyone hearing an offer)

3. If Judy replied to the offer via email, would Kristy and Judy have formed an agreement? (Yes or No)

4. Why not? (Judy’s communication of an acceptance does not change the fact that Judy can only accept an offer that was made to her or Judy’s communication of an acceptance must be made orally because the original discussions of the offer were made face-to-face with Kristy, Judy, and Michael present)

5. If Michael wanted to accept Kristy's offer, Michael would have to respond to Kristy's offer (verbally, via U.S. Mail, or by email).

Answer 1

Answer 1: No.

Answer 2 : Since Kristy had specifically made the offer to Michael, so the acceptance of offer for sale of property can only be given by Michael. This is why Judy would not have a contract because the acceptance can only be given by the person to whom the offer is being made, i.e, Michael.

Answer 3 : No.

Answer 4 : Generally, a contract results in an agreement, which must be mutual and also the offer has to be made to the offeree. However, in this case Kristy made no such offer to Judy as such there was no contract (as mentioned in answer no. 2). Therefore, Judy’s communication of an acceptance via email does not change the fact that Judy can only accept an offer that was made to her.

Answer 5 : In the information given in the question, it is specifically mentioned that Michael must accept the offer by replying to Kristy via email. Therefore, Michael would have to respond to Kristy's offer via email.