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Please read the fact situation carefully, and using your knowledge of contract law, decide whether there is a contract between Jack and Cliff and between Jack and Cynthia and explain why.

On Thursday, May 14, Jack received the following letter from Cynthia:

Dear Jack, I will let you have my 'Cynthia House' for this June-through-

August season, same terms under which you occupied it last year.

Please reply in a week."

Jack notice Cynthia's letter was postmarked May 11.

Earlier in May, Jack had made inquiry at "The Cliffs," a mountain resort owned by Cliff. In Cliff's absence, Joe, one of Cliff's caretaker, had shown Jack two available house, "Hi-Vu" and "Lo-Vu," owned by Cliff, which Joe stated were listed for rent at $6,000 and $3,000 respectively, for one season.

On May 15, Jack received a letter from Cliff which read, "This confirms statements by Joe. You may have Hi-Vu at $6,000, or Lo-Vu at $3,000, for the season June through August, all services included, payable in equal monthly installments."

On May 17, Jack wrote to Cliff as follows, "I think your prices are high. Will you take $5,000 for Hi-Vu? If not, then I'll have to settle for Lo-Vu, and I agree to pay the $3,000 you ask, only I hope you may be willing to consider some concession if I pay the whole $3,000 in advance." On May 17, Jack learned that Cynthia had sold Cynthia House to Jones for Jones' immediate occupancy. On May 18, Cliff received Jack's letter and Cliff immediately telegraphed Jack, "No change in prices. See my letter of the 16th." Jack received Cliff's telegram the same day, May 18; and later that day Jack also received Cliff's letter of May 16, which read, "Our deal is off."

Jack immediately wrote Cynthia, "I'll take Cynthia House per your letter of the 11th." The normal course of post between Jack and Cynthia and Jack and Cliff was one day.

What rights, if any, does Jack have against Cynthia and Cliff?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M93112741

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