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Consider the following sequence of events. July 1: American Pen wrote and mailed Stationary Shop a letter offering to sell 200 fountain pens for $2 each. July 3: Stationary Shop received the offer. July 5: American Pen received notification of a significant price increase in the materials used to manufacture the fountain pens. July 6: American Pen wrote and mailed Stationary Shop a letter revoking the offer of July 1. This was the only step American Pen took to notify Stationary Shop of the revocation of the offer of July 1. July 8: Stationary Shop wrote and mailed to American Pen a letter accepting the offer of July 1 for the fountain pens. July 9: Stationary Shop received the letter from American Pen revoking the offer of July 1. July 10: American Pen received Stationary Shop's letter of acceptance. You can assume that all letters mailed were properly mailed to the correct address and had sufficient postage. (a) Is there a contract between Stationary Shop and American Pen for the fountain pens? (b) Explain your answer in detail, including the effective date of the acceptance of the offer, if any, the terms accepted, if any, and the effective date of the revocation of the offer, if any.
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