Question

Hermie sent Waldo a letter and offered to paint Waldo's house for $1,200. Before Waldo could accept, he was struck by a bus and died. The representative of Waldo's estate saw the letter and called Hermie, telling him that Waldo's estate accepted the offer to have Waldo's house painted.

Based on these facts, the representative accepted the offer and created a binding contract between Waldo's estate and Hermie.

A. True

B. False

Answer 1

B. False:

Based on the situation explained, it is an example of counter offer by the estate of waldo and not an acceptance of offer given by Hermie to Waldo. Since the offer was given to Waldo, it has to be accepted by Waldo himself. On the occurance of death of Waldo, the offer lapsed by default. so the estate of Waldo cannot accept the same offer. instead the estate of waldo can give an offer to Hermie or Hermie can give a fresh offer to estate of Waldo and on acceptance of that new offer, it will become a binding contract between Hermie and Estate of Waldo.