Question

Air Jamaica Vacations (AJV) requested bids from printing firms to produce travel brochures. Moore Graphic Services (Moore) responded with an offer quoting prices and terms for an agreement to produce between 100,000 and 250,000 brochures. The offer stated that sales tax would be charged and requested that AJV indicate its acceptance by signing and returning the offer. Moore then contacted one of its vendors, Starr Printing Co. (Starr), about producing the brochures and sent AJV samples of the work to be performed. Meanwhile, AJV returned the offer with some modified terms, including a handwritten notation, "no tax." Moore then told Starr it was putting "the job" on hold and told AJV that it could not perform "the job" because of a dispute about the tax. Starr printed the brochures and demanded payment. AJV refused, claiming in part that the brochures were of "poor quality." Starr filed a suit in a federal district court against AJV. AJV filed a suit against Moore, claiming a breach of contract for giving the job to Starr. Moore filed a motion for summary judgment, on the ground that there was no contract. Did Moore and AJV have a contract? Why or why not? Please explain. HTML EditorKeyboard Shortcuts

Answer 1

Answer:

There was no contract between Moore and AJV.

Moore sent an offer to AJV, but the offer was not accepted. Instead, AJV made a counteroffer to Moore asking them to pay the taxes themselves, not AJV. But Moore did not accept AJV's counteroffer, therefore, there was no contract between them.

In order for a legal contract to exist, both parties must accept the terms of the contract, i.e. both parties must the other party's offer. In this case, neither Moore or AJV accepted each other's offer.