3 Seller wrote a general circular to ten buyers asking Do yo

3. Seller wrote a general circular to ten buyers asking, “Do you want to buy 240 good 1,000-pound cattle at $8.25? Must be sold by Friday. Phone me at Wichita, Kansas. “One buyer faxes an immediate acceptance for all 240 cattle. Is there a contract? Why or why not?

Solution

The requisite elements that must be established to demonstrate the formation of a legally binding contract are (1) offer; (2) acceptance; (3) consideration; (4) mutuality of obligation; (5) competency and capacity; and, in certain circumstances, (6) a written instrument. The above case has only offer and acceptance where as it lacks all the other elements of the contracts.