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7. On May 1, Jennings, a car dealer, emails Wheeler and says, "I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500 at any time before June 9. [Signed] David Jennings." By May 15, having heard nothing from Wheeler, Jennings sells the car to another. On May 29, Wheeler accepts Jennings’ offer and tenders $13,500. When told that Jennings had sold the car to another, Wheeler claims Jennings has breached their contract. Did Jennings breach? Explain.

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Answer:

Jennings breached the contract

Explanation:

A merchant firm offer is one that is irrevocable, the offeror makes an offer to sell goods within a given time frame and signs off on it.

Even without consideration (acceptance) from the other party, the contract is irrevocable.

A merchant firm offer that does not have a stated time frame rains open for a reasonable time.

In this instance Jennings made a merchant firm offer. Even if Wheeler had not accepted the offer it is irrevocable till June 9.

So by selling the car on May 15 he has breached the contract.

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