On April 14, Renter contacted Mountain Rentals Co. and an agent showed him 2 properties available for
Question:
On April 14, Renter contacted Mountain Rentals Co. and an agent showed him 2 properties available for rent from June through August: the Summit House for $6,000 and the Cabin House for $3,000.
On April 15, Renter received a letter from Mountain Rentals Co. which read, "This letter confirms that you may have the Summit House for $6,000 or the Cabin House for $3,000 for the season June through August. All services included, payable in equal monthly installments."
On April 16, Mountain Rentals Co. mailed a letter to Renter stating,
"The Cabin House is no longer
available." The letter was delivered to Renter on
April 18.
On April 17, Renter wrote to Mountain Rentals Co., "I think your prices are too high. I can give you $5,000 for the Summit House. If not, then I'lI have to settle for the Cabin House, and I agree to pay the $3,000 you ask, but I hope you may be willing to consider some concession if I pay the whole $3,000 in advance."
On April 18, Mountain Rentals Co. received Renter's letter and immediately emailed Renter,
"No change in prices. See my letter of April 16, which said 'the Cabin House is no longer available.'"
Was a valid contract formed?
Accounting Information Systems
ISBN: 978-1260153156
2nd edition
Authors: Vernon Richardson, Chengyee Chang, Rod Smith