Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 22

Caleb, operator of a window-washing business, dictated a letter to his secretary addressed to Apartments, Inc., stating, "I will wash the windows of your apartment buildings at $4.10 per window to be paid upon completion of the work." The secretary typed the letter, signed Caleb's name, and mailed it to Apartments, Inc. Apartments, Inc., replied, "Accept your offer." Caleb wrote back, "I will wash them during the week commencing July 10 and direct you to pay the money you will owe me to my son, Bernie. I am giving it to him as a wedding present." Caleb sent a signed copy of the letter to Bernie. Caleb washed the windows during the time stated and demanded payment to him of $8,200 (2,000 windows at $4.10 each), informing Apartments, Inc., that he had changed his mind about having the money paid to Bernie. What are the rights of the parties?