Xena is a distributor of air conditioners, operating under the trade name of Kool R.U. Xena supplies conditioners to retailers mostly during the Spring. On July 1, Xena stumbled across three air conditioners she wished to sell so she sent the following memo to Electra, a business which uses this type of air conditioner.

July 3, 2018

I have three air conditioners remaining in this year's supply. I will sell them to you for $2,000 each if you want them. Think it over. I will hold this offer open for you for 30 days.

Signed X

On July 27, a representative of Sullivan Corporation came to Xena's facility and asked if Xena had any air conditioners. Xena said; "yes". The representative then offered to purchase the three air remaining air conditioners at a price better than the price offered to Electra. Xena agreed to the sale to Sullivan.

(a)      On July 28, Xena informed Electra of the sale. That same day, Electra sent a letter by Fed-Ex overnight mail accepting Xena’s offer and demanding delivery of the air conditioners. When Xena responds that she already sold them, Electra brings suit. Who wins? Explain fully.

(b)      Would your answer to (a) be different if Xena did not notify Electra of the sale? Explain fully.

Answer rating: 100% (QA)

a The party who wins the case depend on the timing of information xena provided to electrac about th... View the full answer