On March 2, Bankers Life & Casualty Co. proposed in a letter addressed to Gaston Trepanier that

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On March 2, Bankers Life & Casualty Co. proposed in a letter addressed to Gaston Trepanier that he accept a lump-sum settlement of $20,000 in exchange for Bankers Life's release from a disability income policy that paid Trepanier a $400-a-month benefit as long as he lived. The letter stated that should Mr. Trepanier decide "to accept our offer," he could "jot a note at the bottom of this letter and return it." Mrs. Trepanier discussed the idea with her husband, who decided to accept the offer and directed her to write a note on the bottom of the March letter as directed. She did so on April 6, and placed the letter in an envelope, intending to send it the following day. On April 7, Mr. Trepanier was hospitalized and the letter was not mailed. Mr. Trepanier fell into a coma on April 8. On April 12, Mrs. Trepanier tried to accept the offer by mailing the letter to Bankers Life. On April 14, Mr. Trepanier died. Bankers Life subsequently revoked its offer and issued a final disability payment. Was a contract formed when Mrs. Trepanier accepted the $20,000 offer on her husband's behalf?

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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-0071317658

15th edition

Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt

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