Question

Anthony owns a bookshop that specializes in acquiring and selling rare books. He sees an advertisement for a first edition copy of a book written by John Steinbeck. The advertisement was placed by a book collector named Cindy Calhoon and states the book in "on sale for $1000". Anthony phones Cindy offers to buy the book for $850. Cindy declines, but verbally agrees not to sell the book to anyone else if Anthony phones her back within three days with a higher offer. Anthony agrees. The next morning, Ken Dallas, a 17 year old visits Cindy after also seeing her advertisement. He examines the book and says he is willing to pay the full amount of $1100 for the book. However, Ken will not have the full amount of the payment available until his 18th birthday,later that week so he gives Cindy a $50 deposit to hold the book until his birthday, which she accepts. That same afternoon, Jada Epson comes into Cindy's shop an asks if she has any first edition copies of the book by Mr. Steinbeck. If so, she will willing to pay $1500 for the book. Cindy agrees to sell a first edition book to Jada. A few minutes later, Anthony phones Cindy with his higher offer and says will now pay her the full asking price of $1100 for the book. Cindy tells Anthony she has just sold the book to Jada Epson for $1500. Jada claims she has a contract with Cindy and is entitled to keep the book. Anthony and Ken sue Cindy claiming they also had contracts and are entitled to possession of the book. Did any of them have a contract? If so, what is each of them entitled to?

Answer 1

The first element of contract, ie. Offer of sale for the specified $ amount , is there , in the form of Cindy's advertisement.

There is only an oral contract with Anthony , which is quite difficult to be proved so as to be legally enforceable ,in a court of law.

Cindy,the seller should have accepted payment or Anthony,the buyer should have had physical possession of the book covered by the oral contract, if at all there is any ,for it to be legally valid.

Also Anthony had only communicated his counter offer to try for a higher amount & had not fully accepted Cindy's initial price-offer, for the latter to wait conclusively.

So far ,there is no meeting of minds, between the parties to the contract.

In light of all the above, Anthony's suit will not stand in a court of law , as there exists ,no contract.

With Ken Dallas , there is a vaild contract , as he has accepted Cindy's price-offer , fully without any restraint.

Also, Cindy has knowingly accepted the $ 50 ,at which point of time, there exists an implied contract for Cindy to wait as agreed till the full amount of the payment is made available by Ken on his 18th birthday,later that week --& to hold the book until his birthday as accepted by her.

So, Ken is certain to be under the impression that the deal is closed .

Consideration, the most important element of any contract , is in the form of a promise here--to give the amount later on a mutually agreed time & also to take delivery of the contracted item,ie. The book

In light of all the above, Ken's suit will stand in a court of law , as there exists ,a valid contract.

With Jada, Cindy cannot enter into any contract with him, for sale of this book , as that particular book does not legally exist at all, to be contracted to be sold.

The subject matter of the contract, is no more legally available , on offer , as it had already been promised to Ken, as far as Cindy is concerned.

But Jada cannot be held responsible for the lapse, but he cannot keep possession of the book, which is Ken's by Cindy's implied agreement.

It is Cindy who has to make good the book to Ken.