Ramsey, the owner of a retail candy store, ordered ten boxes of chocolate rabbits from Johnson's Wholesale Candy Company. Johnson's shipped ten boxes of marshmallow rabbits, the only kind in stock. It then notified Ramsey that the marshmallow rabbits were sent as an accommodation, knowing that Ramsey needed the rabbits immediately to meet customer demands for Easter. Under these circumstances, which of the following statements is correct?

Question

Quizplus · Accepted Answer

The shipment of marshmallow rabbits instead of chocolate rabbits, with notification that it was sent as an accommodation, constitutes a counteroffer rather than an acceptance of the original order. Ramsey has the option to accept this counteroffer by keeping the marshmallow rabbits or reject it, in which case no contract is formed for the marshmallow rabbits.

Ramsey, the Owner of a Retail Candy Store, Ordered Ten