On January 1, Seller sent a letter to Buyer offering to sell to Buyer 5,000 widg
ID: 1204024 • Letter: O
Question
On January 1, Seller sent a letter to Buyer offering to sell to Buyer 5,000 widgets for $25 a piece. The letter also stated: “This offer is binding and irrevocable until February 1.” On January 5, prior to Buyer’s receipt of the letter, Seller called Buyer on the telephone and left the following message on the answering machine at Buyer’s place of business: “Ignore my letter of January 1. I have decided to withdraw the offer contained in it.” On January 7, after listening to her answering machine and reading the letter that arrived that same day. Buyer sent Seller the following telegram: “I accept your offer of January 1,” Is there a contract under the CISG?
Explanation / Answer
Answer:- On 1st january - seller send his offer by letter to buyer.
Offer:- seller wants to sell his 5000 widgets for $25 per piece. and offer is binding and irrevocale till 1st feb.
ON 5th jan seller left message on answering machine, that he revoke the order and ignore my January 1st letter.
On 7th january- buyer listen answering machine and recived that 1st januray letter on that day.
Now, buyer want to accept that offer and bing seller to sell his goods.
Now, the seller sent his revoke of offer before buyer acceptance received. seller sent his cancelling order on 5th januray, and letter received on 7th januray. but the buyer listen and read the answering machine and read letter on same day, but from the seller point of view cancellation sends earlier. so in that case seller is not under any contract.