California | Business Law
X has a car showroom, Y entered the showroom, and the latter was interested in several cars. Y chose two cars to compare between (a brand new Mercedes-Benz and a used Jaguar), Y went to X in his office, and after a long conversation, X offered Y the prices of both cars. Y had to travel on a business trip. X asked Y to send his reply through a telegram maximum by 7/1/2011.
Y sent his acceptance -via telegram- on the offer of the Mercedes-Benz on 5/1/2011, and it reached X on 18/1/ 2011.
On 7 / 1/ 2011, X telexed Y offering a sale on the Jaguar for the Eastern Christmas sale, and accordingly sold the Mercedes- Benz on the 10th of January, 2011.
On the 15th of January, 2011, Y entered the showroom expecting to be delivered his Mercedes- Benz, but X told him that it was sold as he didn’t receive an acceptance for the offer and consequently the offer was terminated.
Y sued X and claimed for the Mercedes-Benz car, as X and Y had a valid contract.
Discuss and issue a Judgment.
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