MLS Construction LLC asked MD Drilling and Blasting Inc. to do rock drilling and blasting work required for an excavation project. MD had previously done work for MLS but had not been fully paid. MD agreed to do the work if MLS made a significant payment on the balance due. MLS agreed and gave MD a check for $15,000. MD began work and the same day faxed an unsigned written airpayment to MLS. Two weeks later, MD learned that MLS had stopped payment on the check. MD stopped work on the project and sued MLS for breach of contract. MLS argued that the unsigned agreement that MD faxed revoked the original offer, and therefore there was no contract. Did it?

Question

Business

Pierce Trevino

29 December, 07:14

MLS Construction LLC asked MD Drilling and Blasting Inc. to do rock drilling and blasting work required for an excavation project. MD had previously done work for MLS but had not been fully paid. MD agreed to do the work if MLS made a significant payment on the balance due. MLS agreed and gave MD a check for $15,000. MD began work and the same day faxed an unsigned written airpayment to MLS. Two weeks later, MD learned that MLS had stopped payment on the check. MD stopped work on the project and sued MLS for breach of contract. MLS argued that the unsigned agreement that MD faxed revoked the original offer, and therefore there was no contract. Did it?

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Answers (2)

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Gideon George · Answer 1

Yes of course, the statement is true as the cheque that Mr. MLS gave him was not accepted in written format and when the written agreement was faxed, then also it was not signed by the required authorities. thus there is no authentication that it was agreed upon or not.

Margaret Downs · Answer 2

MD did not revoke their offer, so the contract was valid.

Explanation:

First of all, in order for an offer to be revoked, it must be done before the other party accepts the offer. Once the other party accepted the offer, a contract is formed. E. g. the offeror made a promise but revoked it before the offeree accepted, it is not valid anymore. But this didn't happen in this case, both sides agreed on the offer, so a binding contract exists.

MLS cannot revoke its offer at will simply because they want to, specially after receiving something of value in exchange. MD had already began working, so they had already given consideration to MLS.

In order for a revocation to be valid, it must be communicated to the other party before the acceptance, and that didn't happen here. Just because someone in MLS shouted out loud or told a friend that the offer was revoked, doesn't revoke it.