Drama of the Law: Offer and Acceptance
Offer and Acceptance
Didn't I just buy that car?
Answer Guide for Discussion Questions
Has a contract been formed? Has there been a valid offer and acceptance?
Oscar and Vinny have entered into preliminary negotiations. The terms are not definite, and
there are a number of counteroffers going back and forth.
Has the contract been formed yet?
Yes, Oscar has confirmed the definiteness and seriousness of his offer and clarifies that he will
pay the full price in cash immediately. Vinny's statement constitutes an acceptance of Oscar's offer. A
contract has now been formed and its terms are those of Oscar's offer—$5,000 in cash immediately.
Oscar and Maria have now begun negotiations on Maria's truck. What mistakes did Vinny make in the
video that Oscar and Maria should avoid in their negotiations?
Vinny's major mistake in this video is that he did not realize that he and Oscar had formed a
valid contract. He wrongly assumed that because he still had possession of the car keys, he had not sold
the car to Oscar. By negotiating and forming a contract with Maria for the sale of the same car, he
breached his contract with Oscar thereby relieved Oscar of any legal obligation to perform under the
contract. In sum, Vinny was left without a buyer as a result of his mistakes. Of course, he could sue her
for breach, but that would involve costly litigation — which, in all probability — Vinny would not want
to undertake. (The Uniform Commercial Code requires that the sale of goods priced at $500 or more be
transacted via a written memorandum. Therefore, in reality, there is a defense to the formation of the
Oscar-Vinny contract by Vinny and the Vinny-Maria contract by Maria, because both contracts fall
under the Statute of Frauds [see UCC 2-201 (1)]. We have ignored Statute of Frauds requirements in
this video to clarify other points of law.)
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