Case Problem

On a Thursday morning Tanya happened to see an old friend, Dino, in the parking lot, while chatting noticed his car, and told Dino she needed a car right away and was looking for one just like his. Later that afternoon, thinking about how much better off he would be with some fast cash rather than that car, Dino mailed a signed letter to Tanya’s office stating that although the car was like “his baby” and in “perfect condition,” he would “sell the car to you for $6,000. Need to know before next Tuesday”, and stating further, “Sale is ‘as is’. Must have the $6,000 in cash by next Wednesday.” She received the letter Friday afternoon.

On Saturday, regretting having sent his letter, Dino sent a fax to Tanya’s office stating, “Tanya, I can’t sell after all; pink slip and clear title problem. Besides, I don’t need cash right now after all. Hope you understand.” (Signed Dino.)

Being busy figuring out how she could get together the $6,000 Cash so quickly, Tanya did not go to her office that weekend and so did not learn about the fax until Monday morning, just a few minutes after she had mailed a signed letter to Dino stating in part, “Thanks for the offer. I will buy the car for $6,000, on the terms you offered, but it is going to be hard to get the cash together. Would it be ok to pay $5,000 on Wednesday and the remainder 5 days later?” Dino responded by talking about having title problems and the fax, but Tanya ignored that and demanded he go through with the deal.

Dino claimed his promise was unenforceable and no contract existed. Who will win? Why? Explain fully. (Use IRAC to structure your answer).

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