On July 1, a farmer in the business of raising and selling tomatoes sent the following signed letter to a produce wholesaler, which was received July 2:”Have 2000 bushels of grade A tomatoes available for delivery on August 15 at $10 a bushel. This offer will remain open until July 15.”
On July 5, a severe thunderstorm destroyed the tomato crop in a neighboring county, causing the wholesale price of tomatoes to rise to $20 a bushel. On July 6, the farmer sent the following telegram to the produce wholesaler: “Cancel my offer of July 1.” It was received by the wholesaler on that date. On July 12,
The wholesaler wrote to the farmer:
“I accept your offer of July 1. However, I would appreciate your delivering one thousand bushels on August 15 and the remaining one thousand bushels on August 31.”
The farmer received the wholesaler’s letter on July 14. No further communications took place between the parties.
On August 1, what is the status of the contractual relationship between the parties?
A. There is no contract because the farmer’s offer was revoked prior to the time it was accepted.
B. There is no contract because the purported acceptance stated terms at variance with the offer.
C. There is a contract for delivery of 2,000 bushels of tomatoes on August 15.
D. There is a contract for delivery of 1,000 bushels of tomatoes on August 15 and 1,000 bushels of tomatoes on August 31.
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