The Scenario
Alex, the owner of a high-end coffee shop called “The Golden Roast,” wants to upgrade his espresso machines. On October 1st, he sends a signed letter to BrewTech Corp, a commercial kitchen supplier, stating:
“I am interested in purchasing three (3) Model-X Espresso Machines. I am willing to pay $5,000 per unit. This offer stays open until October 10th.”
BrewTech receives the letter on October 3rd. On October 5th, the manager of BrewTech sends an email back to Alex saying:
“We accept your offer for the three Model-X machines, but the price is $5,500 per unit due to recent shipping increases.”
Alex does not respond to the email. On October 8th, BrewTech sends a second email stating:
“Forget our previous email. We have reconsidered and accept your original offer of $5,000 per unit. We will ship the machines tomorrow.”
Alex immediately replies, saying he is no longer interested and has already purchased machines from another supplier. BrewTech sues Alex for Breach of Contract, arguing they accepted his offer before the October 10th deadline.
The Assignment Tasks
1. Analyze the “Mirror Image Rule”
In your opinion, did a valid contract exist when BrewTech sent the first email on October 5th? Explain the legal effect of BrewTech suggesting a price of $5,500.
2. The Revocation of the Counter-Offer
Legally, what happened to Alexs original offer ($5,000) once BrewTech sent the first email? Can a party “take back” a counter-offer and go back to the original terms?
3. The Final Verdict
Based on the principles of Offer and Acceptance, who should win the lawsuit: Alex or BrewTech? Justify your answer using contract law terminology.
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