Contract 2 | Civil homework help

Professor Irwin Corey (“Corey”), the world’s foremost authority, was halfway through the process of hand-writing a new Business Law textbook when he realized he should buy a PC. As Corey sat at a table in the school cafeteria fumbling through his notes, Tara Brainiac (“Tara”), a computer lab assistant at the university, happened to pass by. Tara offered to sell Corey a used Osborne PC for $500.00. Corey told Tara he would like to price PC’s elsewhere before committing to a purchase. “No problem,” Tara said and wrote the following note:

March 1, 2020. I offer to sell an Osborne desktop computer system to Corey for $500.00. Offer to remain open for one week. (Signed, Tara Brainiac).

The next day, Corey went to Clips, a local office supply store. Hanging outside the store window was a large sign advertising the following promotion:

$799.00 Complete Desktop System: 4.8 GHz HAL Inspire, with monitor, printer, DVD-ROM

Corey examined the HAL Inspire and talked to a salesperson about the promotion but left the store without making a purchase. The following day he went to his bank, withdrew $500.00 cash, and drove to Tara’s house, prepared to purchase the used Osborne. As he got out of the car, and before he could say anything, Tara said: 

“You still do not want that old PC, do you, Professor? I forgot you were interested and sold it yesterday.”

Corey went back to Clips. This time there was no promotion sign hanging outside the store. He found the same salesperson who helped him the day before and said, “I accept your offer to sell the HAL Inspire for $799.00.” The salesperson told him that the promotion ended that morning. Corey then purchased the HAL Inspire system at full price for $1,200.00.

Answer the following questions:

  1. Did Tara’s note create an irrevocable option contract for one week?
  2. Did Tara make a firm offer to Corey?
  3. Did Tara revoke her offer?
  4. Is Clips’ large sign advertising the promotion an offer?
  5. Assume that Clips’ large sign advertising the promotion is an offer; do Corey and Clips have a contract?
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