In: Operations Management
In what court was the Bates and Cramer vs Ames, heard for breach of contract, for not re soding the lawn of Antlers local lodge.
Ans. Case study -
Ames, seeking business for his lawn maintenance firm, posted the following notice in the meeting room of the Antlers, a local lodge: "To the members of the Antlers - special this month. I will resod your lawn for two dollars of per square foot using fairway brand sod. This offer expires July 15. "The notice also included Ames's name, address, and signature and specified that the acceptance was to be in writing. Bates, a member of the Antlers, and Cramer, the Janitor, read the notice and became interested. Bates wrote a letter to Ames saying he would accept the offer of Ames would use putting green brand sod. Bates received Ames's letter on July 16 and promptly wrote Ames that he would accept fairway sod. Cramer wrote to Ames on July 10, saying he accepted Ames's offer. By July 15, Ames had found more profitable ventures and refuse to resod either lawn at the specified price. Bates and Cramer brought appropriate action against Ames for breach of contract.
Counteroffer -
Ames wins both cases. The first letter from Bates was not an acceptance because it did not correspond with the terms of the offer. It was a counteroffer, as it called for Ames to use a different brand sod, and therefore constituted a rejection of the original offer which terminated the original offer. This failed to form a contract as the original offer had been terminated by (a) the rejection, restatement, second, contacts, sec 38 and (b) expiration of the time for acceptance as by its terms it expires July 15, restatement, second contracts, sec 41.
Cramer cannot recover because he was not offeree. The offer was not addressed to members of the Antlers. The party making an offer has the right
To determine with whom he will contract. It is immaterial whether the offeror had special reasons for contracting with the offeree rather than with someone else.
Cramer made an offer to Ames through his letter, which Ames could have accepted, but chose not to.