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Serena works and displays her paintings in a local gallery. Ivette sees her work and is particularly interested in a seascape painting. Ivette tells Serena that she really likes the painting. Serena tells Ivette to “Make me an offer”. Ivette leaves, saying she’ll be in touch with Serena later. A few days later, on June 3, Ivette sends Serena a letter offering her $40,000. Serena receives the letter on June 5. Serena writes back on June 6, saying $40,000 is a bit low and proposes a sale price of $45,000. Ivette receives this letter on June 8. Ivette thinks it over and decides $45,000 is a fair price. Ivette sends a letter on June 10 accepting the $45,000 price. Meanwhile, Serena decides she really deserves $50,000 for the painting. Serena calls Ivette on June 11 to tell her the offer of $45,000 is revoked and she is now setting the price at $50,000. Serena receives Ivette’s acceptance letter on June 12. All of the answer choices are correct. Serena’s letter to Ivette on June 6 becomes effective as an offer when Ivette receives it on June 8. Ivette’s letter to Serena on June 10 becomes effective as an acceptance when Ivette mails it on June 10. Serena’s phone call on June 11 is immaterial because there was already a valid contract at that point.
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