Signature Assignment: Short-Term Funding
February 20, 2021
Monetary Policy and the Fed
February 20, 2021

Sequent Products makes washing machines

Please use legal reasoning (FIRAC) to respond to this assignment and review Chapter 20Preview the documentView in a new window

Sequent Products makes washing machines. Over the phone, Sequent offers to sell Treadwater Appliance Outlet one hundred model fx2013 washers at a price of $150 per unit. Sequent says that it will keep the offer open for thirty days. Treadwater responds that within two or three weeks it will decide whether to accept. One week later, Sequent e-mails, and Treadwater receives, notice that the offer is withdrawn. Treadwater immediately phones Sequent to accept the $150-per-unit offer. When Sequent refuses to deliver at that price, Treadwater files a suit. Sequent asserts, first, that there is no contract and, second, that if there is a contract, it is unenforceable.

Facts

1.

2.

3.

Issue:

Whether Sequent’s telephone offer was a Merchant’s Firm Offer when it promised to keep the offer open for 30 days.

Rule:

Merchant’s Firm Offer

  1. Merchant
  2. Makes an offer
  3. Available for a specified period of time
  4. In writing
  5. Is irrevocable

Analysis:

  1. Merchant

Sequent manufactures washing machines so is a merchant

  1. Makes an offer

Sequent made an offer to Treadwater of $150 per unit

  1. Available for a specified period of time

Sequent committed to keeping the offer open for 30 days

4. In writing

Sequent made the offer by telephone

5. Is irrevocable

As there was no writing this offer was not a “Merchant’s Firm Offer.”

Conclusion:

Whether Sequent’s telephone offer was NOT a Merchant’s Firm Offer when it promised to keep the offer open for 30 days.

“Get 15% discount on your first 3 orders with us”
Use the following coupon
FIRST15

Order Now

Place Order

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp