Clean Machines Company makes washing machines. Over the phone, Clean offers to sell
Dealers Appliance Outlet one hundred model EZ2000 washers at a price of $150 per unit.
Clean says that it will keep the offer open for ninety days. Dealers responds that within
two or three weeks it will decide whether to accept. One week later, Clean faxes, and
Dealer receives, notice that the offer is withdrawn. Dealer immediately phones Clean to
accept the $150-per-unit offer. When Clean refuses to deliver at that price, Dealer files a
suit. Clean asserts, first, that there is no contract and, second, that if there is a contract, it is
unenforceable. Discuss Clean’s assertions.
I would have to say that there was no Contract that was signed, but however there was an
offer that was made to the dealer by the clean machine company. He told the dealer that he
would let the buyer think about the price that was offered for the EZ2000 washer. So, the
clean company is right about the fact that there was no contract. The one thing that they
must look at is the fact that the clean company must keep the offer open for a full 90 days.
However, we can see that they didn’t the withdraw the offer one week later. The dealer to
the 90 days serious, and he is relying that the clean company will stay true to their word.