Law, Business, and Society 9th Edition by Tony McAdams

Exercise 18

Edward Sherman wanted to sell his business, Adgraphics. He retained V.R. Brokers as an agent for the sale. On December 5, 1985, William Lyon offered $75,000 for the business. Later that day, Sherman signed a counteroffer to sell for $80,000. On December 7 at 11:35 AM Lyon signed the counteroffer, and around noon he took it to Brokers. At about 9 AM that same day, Sherman told Brokers' principal, Robert Renault, that he had decided to cancel his counteroffer. Renault told Lyon of that decision immediately before Lyon handed the signed counteroffer to Renault. Lyon then sued for breach of contract. Decide. Explain. See Lyon v. Adgraphics, 540 A.2d 398 (Conn. Ct. App. 1988).