Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 10

Larry Horton negotiated with Commercial Recovery Systems Inc. to settle a debt. Commercial sent Horton a letter saying that $1,000 would be accepted as full and final settlement of the $25,038 owed. The letter continued, "This offer will be extended through June 30 … after which time the full balance will be due. In addition, all derogatory credit information regarding the account to be settled…. Terms: $500.00 due 6/15 … $ $500 due 6/30…." On June 18, Commercial received a $500 check from Horton dated June 14. On July 2, it received a second $500 check dated July 27. Two years later, Horton learned that his credit report still contained adverse information concerning the account. Horton sued, saying that Commercial had not complied with its contract. Commercial argued that its letter offer had not been accepted because the only way Horton could have accepted was by making full payment on or before June 30. Had Horton accepted the letter offer?