Homer, the CEO of Green Leaves (an organic farm
business), has been negotiating a contract with Marge, the owner of a fruit
shop, for the supply of spinach. Last Tuesday Homer sent the following email:
‘Dear Marge, following our previous conversations, we wish to sell you 50 kilos
of spinach for $500’.
The day after, Marge replied: ‘Dear Homer, I
wonder whether you would consider payment in instalments.’ Homer did not reply.
Two days later, Marge decides to accept Homer’s
offer and replies: ‘Ok. I understand – let’s do business for $500 upfront’.
However, Homer had already sold the spinach to a third party and he refuses to
go ahead with the deal.
Which one of the following statements is MOST LIKELY CORRECT ?

Question

Homer, the CEO of Green Leaves (an organic farm
business), has been negotiating a contract with Marge, the owner of a fruit
shop, for the supply of spinach. Last Tuesday Homer sent the following email:
‘Dear Marge, following our previous conversations, we wish to sell you 50 kilos
of spinach for $500’. 
 The day after, Marge replied: ‘Dear Homer, I
wonder whether you would consider payment in instalments.’ Homer did not reply. 
 Two days later, Marge decides to accept Homer’s
offer and replies: ‘Ok. I understand – let’s do business for $500 upfront’.
However, Homer had already sold the spinach to a third party and he refuses to
go ahead with the deal. 
 Which one of the following statements is  MOST LIKELY CORRECT ?

Answer

There is no contract between Green Leaves and
the supermarket: Marge’s first response would be regarded as a counteroffer,
the effect of which is that the supermarket’s original offer lapses.

Answer

There is a contract between Green Leaves and the
supermarket: Marge’s question regarding instalments was only an invitation to
treat.

Answer

There is a contract between Green Leaves and the
supermarket: Marge’s question regarding instalments was only a request for
information.

Answer

There is a contract between Green Leaves and the
supermarket: Marge’s first response would be regarded as a counteroffer, the
effect of which is that the supermarket’s original offer lapses.

Crowdly

Homer, the CEO of Green Leaves (an organic farm business), has been negotiating ...

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