Chip Monk has been in the business of supplying commercial Reasons Why a Legal Contract Does Not Exist Between Chip Monk and Polly Easter Paper

Chip Monk has been in the business of supplying commercial carpet to companies for several years. On 11/1 Polly Ester’s Supplies calls to purchase 100 yards of “Heather Blue, Industrial Grade” carpet. Chip offers the carpet at $37 per yard, with delivery on or before 12/31, payment on delivery. Polly accepts. On 11/3 Polly sends the following letter confirming the deal:

“As discussed and agreed, we hereby accept your offer for 100 yards of “Heather Blue, Industrial Grade” carpet at a price of $37 per yard, delivery on 12/31 or earlier, payment on delivery. We also reserve the right to purchase up to 500 yards more at the same price for a period of six months from this date (signed) Polly Ester (owner of Polly Ester’s Supplies.)

As of 11/21 Chip has not responded to Polly.

You have been asked by Chip to draft a memo indicating the following:

Is there a contract? If so, for what? What law applies here and why?

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