Schmidt, the owner of a small business, has a large piece of used farm equipment

Question

Schmidt, the owner of a small business, has a large piece of used farm equipment for sale. He offers to sell the equipment to Barry for $10,000. Discuss the legal effects of the following events on the offer:

Schmidt dies prior to Barry’s acceptance, and at the time he accepts, Barry is unaware of Schmidt’s death.

The night before Barry accepts, fire destroys the equipment.

Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Schmidt dies, and later Barry accepts the offer, knowing of Schmidt’s death.

Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Barry dies, and Barry’s estate accepts Schmidt’s offer within the stipulated time period.

Explanation / Answer

Schmidt, the owner of a small business

Schmidt has a large piece of used farm equipment for sale. He offers to sell the equipment to Barry for $10,000. The legal effects of the following events on the offer:

Answer – It would not be treated as “Contract” hence not binding by any legal effects. In the event of Death of Offeror the offer may be terminated and becomes Null & Void.

2. The night before Barry accepts, fire destroys the equipment.

Answer – If the subject Goods does not exists before a valid acceptance than Offer is terminated and will not be account as contract, Hence no legal impact.

3). Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Schmidt dies, and later Barry accepts the offer, knowing of Schmidt’s death.

Answer- In the event of Death of Offeror the offer may be terminated since event has occurred before a valid acceptance.

4. Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Barry dies, and Barry’s estate accepts Schmidt’s offer within the stipulated time period.

Answer – Original Offer was made from Schmidt to Barry and as per contract act, offer will be treated as terminated in the event of Death of Offeror or Offeree. Since Offer was not made to Barry’s estate, hence Barry’s estate not eligible to a valid acceptance.

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