Southwest v. Oliver
Facts: Oliver makes offer to sell land to Southworth. Says neighbor would like to buy grazing permits. Southworth accepts contract. Problem between Southworth and neighbor. Oliver takes back offer saying it was an ad directed at several different people. Court says if Southworth thought it was a legitimate offer to him through Objective test, then it is a contract. Southworth wins. Rules: 1) An offer must show or indicate a desire to enter into a contract 2) AN offer must be directed to a person or group of persons. a. The more definite the offer is, the more binding it becomes b. Words of promise indicate offer Issues: Did this letter indicate and offer? Reasoning: The court ruled that this letter did indicate an offer because it had specifics that were based upon prior meetings. The price was asked for with interest and was delivered. The letter did not come “out of the blue” nor did the price quotation. A reasonable person could conclude this would be an offer.