Question

The manager of Mack's Bar sent Olive Outlet an order for 200 cases of olives to be shipped "as soon as possible." The day Olive Outlet receives Mack's order, it ships the olives. Later that day, Mack's manager phones Olive Outlet and tries to revoke his offer. Under these circumstances:

Answer 1

a. Mack does not have to accept the shipment

b. Olive Outlet has accepted and breached the contract

c. Olive Outlet's shipment is considered a counteroffer

d. Mack cannot revoke based on principles of promissory estoppel

Answer:

d. Mack cannot revoke based on principles of promissory estoppel

Explanation:

Promissory estoppel refers to the doctrine in contract law that allows a party's recovery for damages suffered based on the party's reliance on a promise even if there is no legal contract between the aggrieved party and the party that fails on the promise. From the above this stops mack's bar from going back on its promise to buy the goods of Olive outlet even there is no legal contract yet as olive outlet may have already suffered damages.