Q&A: question about contracts?

Question by Paul Wall: question about contracts?
this is a hypothetical question that im sort of confused on. if person A makes an offer to universal music to sell his record label for $ 40million. universal mails back a rejection but before it is recieved, universal accepts the offer by phone. what would be the result. would both person A and universal studios have to honor the contract?
i would think neither person A and universal studios can honor the contract because universal studios verbally accepted the offer but with the sum being $ 40million, the written document would have more authority. am i right?
can either person A or universal studios avoid the contract?
can either person a or universal studios honor the contract?

Best answer:

Answer by Nightrider
The written rejection would be the document that would be legal in a court of law. A phone call is never admissable. It could be made by anyone representing someone false. In either case, a verbal promise can be denied as ever having been made.

Best case scenario. Universal Music does call and state it wants to accept the offer and asks for time to have it drawn up in writing. The purpose of the phone call is to ask for additional time since a rejection letter has already been mailed/

Person A accepts the verbal offer and gives Universal a set time period to produce the written document.

I hope this helps and you can find it useful

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