Is there a binding contract between Eddie and Wally?
Wally Cleaver has been told by his parents, June and Ward Cleaver, that they will help him buy a computer for college.
July 6, Eddie Haskell sends Wally a letter offering to sell him a computer for $1,500. The letter states that the offer is to remain open until July 20.
July 12, Wally writes Eddie a letter stating, “Your offer appears a little high. I’ll need to get my parents’ approval for the $1,500 offer. In the meantime, I already have their permission to purchase a computer for $1,000 and could buy your computer at that price.”
July 15, June and Ward approve the $1,500 purchase.
July 16, Eddie receives Wally’s letter of July 12.
July 19, Wally sends the following fax at 10:45A.M.: “I accept your offer for $1,500.”
July 20, The day Eddies stated in his July 6 letter to Wally that his offer would terminate
July 21, Because of a malfunction at the telephone switching station, although it appeared that
Wally’s fax was sent and received on July 19, Eddie doesn’t receive it until July 21.
Discuss the legal effect of Wally’s fax sent on July 19 in light of the fact that the fax did not reach Eddie until July 21. Is there a binding contract between Eddie and Wally?
This question is in the General Section. Responses must be helpful and on-topic.