when analyzing the Koji and Maria situation you need to consider two things: 1.
ID: 468975 • Letter: W
Question
when analyzing the Koji and Maria situation you need to consider two things: 1. The elements of a contract. a. Offer b. Acceptance c. Consideration d. Capacity e. Legality If all of these elements are present - even if the consideration has not yet been exchanged - you have a contract. 2. The actions / words of the parties establishing the elements of the contract. Look VERY CAREFULLY at the parties' words - especially what Koji says. After you do that, combine the elements and the words and then make your decision as to whether there was a contract formed.
Explanation / Answer
I read the case from text book
I believe a contract has been formed in this scenario although I’m not sure how enforceable it isbecause the product wasn’t delivered and funds weren’t exchanged. The mailbox rule, or acceptance upon dispatch rule says thatacceptance of a bilateral contract occurs when the offeree dispatches acceptance by an authorizedmeans of communication, such as mail or FedEx. With the mailbox rule, acceptance is affectivewhen it is sent, even if it is lost in transmission. The emails may not be bound by the mailboxrule however.
One part of the elements of a contract isAgreement.To have an enforceablecontract, there must be an agreement between the parties. This requires an offer bythe offeror and an acceptance of the offer by the offeree. There must be mutualassent by the parties. The offer in the Koji/Maria scenario is for Maria to sell the 203 Ford SUV for $20,000, but Koji said that it isn’t worth more than $14,000 because of the cost it would be in Florida. Since the car was overpriced and sold more than Koji expected, there is noagreement in this situation. Koji received the Federal Express letter from Mariawhich may show an actual price of the car. Basically, there was no official offer, butthere is some work that needs to be solved before an offer can be established. An offer was made in this case, but there was not an acceptance. By Koji askingMaria if she was still interest in paying $20,000 he leaves the decision up to her toaccept or not accept. Yes, he told her he accepts her offer, but not before that he askif she was still interest in paying the $20,000. Because of the question to Maria hehas left it up to her to decide. Again, an offer was clearly made and communicatedto the offeree.
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