Jud Wheeler signed a contract to purchase 10 acres of land in Idaho from the Krauses.
If Jud offered the Krauses considerably less for their property than its possible market value and the Krauses accepted the offer, could they avoid the contract on later learning that they might have sold it for a higher price?
No, because of legal sufficiency and adequacy of consideration they could not avoid the contract after later learning that they might have sold it for a higher price, unless they were victims of “unlawful threats or coercion causing someone to do something he or she would not otherwise have done” Miller & Hollowell (2011). Furthermore under the doctrine of freedom of contract, “parties are usually free to bargain as they wish” Miller & Hollowell (2011).
If Jud offered the Krauses one price and inadvertently typed a different, higher price into the contract, can Jud be held to the typewritten amount?
Yes, Jud can be held to the typewritten amount. If both parties looked over the typewritten contract and then accepted it as was, it is a legally binding contract. According to Miller & Hollowell (2011) “acceptance is a voluntary act (which may consist of words or conduct) by the offeree that shows assent (agreement) to the offer. The acceptance must be unequivocal and must be communicated to the offeror. Thus, an acceptance has three requirements:
1. An offer must be accepted by the offeree, not by a third person.
2. The acceptance must be unequivocal.
3. In most cases, the acceptance must be communicated by the offeror.”
Miller, R. & Hollowell, W. (2011) Business Law, Text and Exercises (6th Ed.)
Mason, OH: South-Western Cengage Learning