Person D wanted a custom-built recording studio in his home. He asked local contractors for bid submission. The lowest bid was of person A. They both discussed the type and quality of the material to be used. Person D asked for a better quality of material within the bid price. They also discussed the starting date for the construction work. Two weeks later, D changed his mind to carry out the plan and A filed a suit in response. To find: The procedure to terminate an offer.

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Peggy had an oral contract with Bill to locate desirable real estate that she could use for rental property. Peggy stated she wanted to find condos that could be purchased for under $300,000 that could be rented for at least $2,000 per month per unit. Bill located a new condo unit that could be purchased for $260,000 and was renting for $2,200 per unit. Bill noted that the units were new and a great deal, and he bought a unit for himself. About a month later, Bill found a second property that was listed for $250,000 and rented for $2,300 per unit. Bill told Peggy about this second property and not the first property, and Peggy purchased the second property. Afterward, Peggy learned that Bill had bought the $260,000 condo without telling her about it. Peggy believes that Bill has acted improperly. Bill claims that he did what Peggy asked -- he found a property for under $300,000 that rented for $2,000 per unit. Bill argues that he did not tell Peggy about the first condo because the…

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Chapter 12, Problem 3RE

Summary Introduction

Case summary: Person D wanted a custom-built recording studio in his home. He asked local contractors for bid submission. The lowest bid was of person A. They both discussed the type and quality of the material to be used. Person D asked for a better quality of material within the bid price. They also discussed the starting date for the construction work. Two weeks later, D changed his mind to carry out the plan and A filed a suit in response.

To find: The procedure to terminate an offer.

Summary Introduction

Case summary: Person D wanted a recording studio custom-built in his home. He asked local contractors for bid submission. The lowest bid was of person A. They both discussed the type and quality of material to be used. Person D wanted a better quality of material within the bid price. Person A said that he would check. They also discussed the start date for the construction work. Two weeks later, D changed his mind to carry out with the plan, and A filed a suit in response.

To find: Explain whether the offer even terminated in this case.

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