Question

Michael Smith, Judy Olsen, Kristy Johnston, and their mother owned interests in seventy-eight acres of real property in Montana. When their mother died, she left her interest in the property to Kristy Johnson. Kristy wrote letters to Judy and Michael, offering to sell her own interest to Judy or Michael. Kristy's letter dated July 6 said, "if you want to accept my offer, you must only send it in writing by U.S. mail. Whoever accepts first gets my interest in the land." On July 10, Judy deposited a written acceptance of all the terms in Kristy's offer in the U.S. mail. On July 11, before Judy's written acceptance reached Kristy, Michael telephoned Kristy to enthusiastically accept her offer to sell her interest in the land. Did Judy and Kristy have an enforceable binding contract? Or did Michael's acceptance create an enforceable contract when it was heard by Kristy? Discuss.

Answer 1

Answer:

As per Kristy Johnson's letter where she mentioned the clauses of the acceptance of offer, she clearly mentioned that she will consider a response only if it is in written form and is sent through US mail.

Now Judy did as per the clauses and sent her a written acceptance through US mail whereas Michael telephoned her and let her know of her acceptance. If Kristy is adamant on her terms that she clearly mentioned in her letter to both and will stick to her word, then technically, it is Judy's fair right on the Montana interests whereas Michaels telephone call will be discarded as it did not fulfill the terms.