Xena is a distributor of air conditioners, operating under thetrade name of Kool R.U. Xena supplies conditioners to retailersmostly during the Spring. On July 1, Xena stumbled across three airconditioners she wished to sell so she sent the following memo toElectra, a business which uses this type of air conditioner.
July 3, 2018
I have three air conditioners remaining in this year's supply. Iwill sell them to you for $2,000 each if you want them. Think itover. I will hold this offer open for you for 30 days.
Signed X
On July 27, a representative of Sullivan Corporation came toXena's facility and asked if Xena had any air conditioners. Xenasaid; "yes". The representative then offered to purchase the threeair remaining air conditioners at a price better than the priceoffered to Electra. Xena agreed to the sale to Sullivan.
(a) On July 28, Xena informedElectra of the sale. That same day, Electra sent a letter by Fed-Exovernight mail accepting Xena’s offer and demanding delivery of theair conditioners. When Xena responds that she already sold them,Electra brings suit. Who wins? Explain fully.
(b) Would your answer to (a)be different if Xena did not notify Electra of the sale? Explainfully.
