Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 15

Farber owned a quantity of corn that was stored in a corncrib located on Farber's farm. On March 12, Farber wrote a letter to Barber stating that he would sell to Barber all of the corn in this crib, which he estimated at between nine hundred and one thousand bushels, for $3.60 per bushel. Barber received this letter on March 13, and on the same day immediately wrote and mailed a letter to Farber stating that he would buy the corn. The corncrib and contents were accidentally destroyed by a fire that broke out about 3:00 A.M. on March 14. What are the rights and liabilities of the parties? What difference, if any, in result would there be if Farber were a merchant?