“REMEMBER – Issue spotting is what matters here! Identify the legal issues and then tell what law applies, what the elements of that law are, etc. IRAC – identify the Issue, state the Rule that applies, then Apply the rule to the facts, and finally, stat your Conclusion”
Harvey Boxstore (B hereafter) operates a ceiling fan supply business in Carney. In addition to his consumer business, B specializes in supplying difficult-to-locate light fixtures for contractors who do remodeling work.
B sent the following letter to five contractors in the Carney area:
OFFER TO CONTRACTORS
We have cornered the market for a source of remote controlled “Everybody Comes to Rick’s” ceiling fans. As you might know, these fans are in such short supply that they are nearly impossible to obtain. If you are willing to purchase all your needs from us, we’ll guarantee delivery at $100.00 each.
Steve (S hereafter), a contractor who installed about 15 ceiling fans a year as part of his enclosed deck construction business, received one of B’s letters. S was interested in the fans, so when he was near B’s place of business, he stopped in and asked B the quantity of fans available. B replied that he had a large quantity of fans in his warehouse. On the following day, B sent a messenger to S’s place of business with a letter that provided as follows:
Dear S, I can give you ten percent off the quoted price if you will agree right away to my proposal by picking up the fans. S What do you say? Do we have a deal?
S did not respond. However, on the following day, S was present at the building site of X, another contractor, when X unpacked an “Everybody Comes to Rick’s” fan that X had ordered as one of several from B. There at X’s job site S saw one of the fans for the first time and realized that they were indeed a bargain. X, however, hated the fan as soon as he saw it. X immediately called B and told him that he did not want the fans (Assume X had the power to refuse goods from B if X did not care for them), and B should send a truck to pick up the refused fans.
S was present while X made this call to B. After X hung up, S stated that he was going to purchase that amount of fans from B, so that S might as well save some time and money and simply take the fans which had been delivered to X. X agreed and let S take the fans.
On the next day the price of the fans on the market rose to $200.00 each. On the same day B sent his truck to pick up the refused fans from X, and was told that the fans had been turned over to S. B immediately contacted S and told him that “We have no deal, and I want my fans back right now.” Claiming that he had a contract with B, S refused to return the fans.
B then brought an appropriate action to obtain the fans or their market value from S. S raised the affirmative defense that a contract existed between B and S for a price of $90.00 per fan. B denied this affirmative defense. How will the court decide the affirmative defense of S and B’s reply and why?