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In response to an offer to sell 1000 boxes of erasable markers each containing 50 packs of

10 markers each for a price of $10,000 to a university by a company in Hong Kong, the university asks if the color mix can be changed. Currently, the colors are three black three blue two red

and two green. The university wants the mix five black, three red, one each of blue and green.

Suppose the Hong Kong company states that that is impossible because the markers are prepacked in a factory in Mainland China. The university decides to order the markers in the current standard color configuration. However, the Hong Kong company subsequently found another buyer who purchased the markers for $13,500. The Hong Kong Company explained that in applying the Rule of Counter-Offer their previous offer was negated and thus could no longer be subject to acceptance.

Assuming that the expiry date of offer had lapsed by the time the university indicated acceptance

[a] Would the university breach of contract claim against the company likely succeed? Explain.

No, because no payment was done nor accepted the offer before expiration date.

[b] Evaluate the legitimacy of the companys application of the Rule of Counter Offer.

[c] What would be the appropriate amount of money damages if the BOC claim succeeds or would specific performance be warranted? Explain.

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