Question

In: Operations Management

Malcolm has written a letter to his close friend, Linda. In the letter he offers to...

Malcolm has written a letter to his close friend, Linda. In the letter he offers to sell her his sports car for $4,500. Linda calls Malcolm and explains that she needs some time to think it over as she had not planned to buy a car soon. Malcolm tells her, “I’ll give you until Monday July 19 to let me know whether you want the sports car.” On Thursday July 15, Linda posts a letter to Malcolm agreeing to buy the sports car at the specified price. Later that Thursday, Malcolm is approached by his supervisor at work, Cynthia, who wishes to purchase Malcolm’s sports car. Cynthia offers $5,000 for the car. Malcolm promptly accepts. He phones Linda and leaves a message on her answering machine telling her that he has decided to sell the car to Cynthia instead. Linda hears Malcolm’s message on Friday July 16. Linda’s letter to Malcolm is not delivered until Monday July 19.

REQUIRED: With reference to relevant legal principles use the IRAC legal problem-solving approach to advise Malcolm as to whether he has any contractual obligations to Linda and to Cynthia

Solutions

Expert Solution

As according to the given case and with regards to the legal problem solving approach to advise malcolm with regards to its contractual obligation to Linda and Cynthia. As this is simply the case of offer and acceptance where initially the offer is made by Malcolm to Linda for which she asked for some time to accept for which Malcolm provides her 19th july to let him know with her acceptance answer with regards to the offer for which Linda decides on 15th of july by writting a letter to Malcolm on 15th july agreeing to buy his car on the offered price but this acceptance of Linda is not yet received by Malcolm to let the offer complete and later on 15th july Malcolm receives an offer from his supervisor Cynthia wishing to purchase his car for $5000 which was immediately accepted by Malcolm here the contract is complete between Malcolm and Cynthia On this offer Malcolm leaves a message for Linda that he instead wishes to sell his car to Cynthia on her answering machine which was received by Linda on 16th july and Linda letter is not yet delivered to malcolm till monday 19th july which already makes the contract incomplete and thus accordingly Malcolm legal obligation to sell his sports car is towards Cynthia as in her case the offer and acceptance both are made on time and yet complete.


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