What constitutes a breach of contract? Under the Merchant’s Firm Offer, “a firm offer exists if a merchant gives assurances in a signed writing that his or her offer will remain open. A firm offer is irrevocable without the necessity of consideration for the stated period or, if no definite period is stated, for a reasonable period (neither to exceed three months).” In this case Jennings stated a time frame and signed the offer, by selling the car he is he in breach of the contract?
Wheeler vs. Jennings
Jennings is in breach of his contract with Wheeler, in the Business law book it talks about a Merchant’s Firm Offer this states that under regular contract principles, an offer revoked at any time before acceptance. The UCC has an exception that applies only to firm offers for sale or lease of goods made by a merchant. A firm offer exists if a merchant gives assurances in a signed writing that his or her offer will remain open. A firm offer is irrevocable without the necessity of consideration for the stated period or, if no definite period is stated, for a reasonable period (neither to exceed three months). Jennings has breached the contract he had stated to Wheeler. He did this by selling the car to another party during the specified written offer time frame. Jennings would have not breached his contract with Wheeler if he waited tell October 9th to sell the car. Jennings also put himself in a bind by making it a written contract offer. If Jennings made a verbal contract with Wheeler, Jennings could have gone and sold the merchandise to another customer without breaking any sort of contract.
By singing the paper it became a legal document of proof to the buyer who had the opportunity to buy the car without anyone trying to also take a bid in buying the car. Wheeler has a valid point. Jennings breached their contract of agreement in purchasing the car. Wheeler has a legal document stating Jennings will not sell the car to another customer until October 9th Jennings singed the paper and if Wheeler wanted to he can sue Jennings for a breach of contract and Wheeler would win. In conclusion a based on a similar example in the course book example 18.2. A used Car dealership is selling a Suzuki Sx4 on his lot to gentlemen named Gomez in writing “I have a 2009 Suzuki SX4 on the lot that I’ll sell you for $22,500 any time between now and January 31.” This writing creates a firm offer, and Osaka will be liable for breach if sold to someone else other than Gomez prior to January 31. By Jennings doing the same thing with Wheeler he is in fact in breach of contract because he sold the vehicle to another party within the written time frame.
Hollowell, W. E. &Miller, R. L., (2011). Written Contracts. In Business law: Text & exercises
(6th ed., pp. 226-231). Mason, Ohio: South-Western Cengage Learning.