Business Law

On June 1, Maureen sent a letter by overnight express mail to Joel that offered to sell 10 000 shares in Tadpole Inc (a computer software company) for $5 each. Her offer said that if Joel was interested he should send an email to accept right away. On June 3, Tadpole Inc publicly announced that its engineers had perfected a new technology that would revolutionize the electronic commerce industry. On June 6, Joel returned from his cottage and learned of both Maureen’s offer and the price of Tadpole Inc shares. He promptly tried to email his acceptance but the system was down. So late that night he called Maureen’s office and left a message stating, “I accept your offer. I will pay a total of $50 000 for 10 000 shares in Tadpole Inc.” and he would send his signed acceptance by overnight express mail. After the call, he proceeded to sell 100 shares in stock in Apple Computers to pay for it. By June 7, the price of a single share in Tadpole had increased to $100. Before heading into the office, Maureen immediately emailed Joel a letter confirming that her offer had lapsed and was not valid. On June 8, Apple announced its new IPhone and its stock immediately increased by an additional $300 per share. Due to a postal problem, Maureen received Joel’s letter accepting the contract on June 8 which was one day later than expected. On June 9, Joel ‘s email system was finally fixed and he received Maureen’s email withdrawing her offer. Maureen refuses to sell Joel the Tadpole stock. Should Joel sue Maureen for breach of contract? If so would he be successful and what are his remedies? Can Joel recover even if he would not be successful for breach of contract?

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