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You are an assistant to the attorney for Red-Holdings company. To complete this assignment you must write a two-to-three page report discussing the legal issues and the likely outcome of the case below:
Red-Holdings Co. v. Bluelands Co.: Several months ago, the Red-Holdings CEO met with the CEO for Bluelands Corporation for lunch to discuss potential business ventures between both companies. After several glasses of wine Red-Holdings’s CEO offered to buy from Bluelands a 50 acre parcel of waterfront land located in the Miami Beach. Red-Holdings’s purchase offer was for $100 million but Blueland’s reply was that it would sell the land only at $150 million. Since Red-Holdings had so much interest in this piece of land, its CEO told Bluelands that he would have to meet with the rest of its board to make a decision on Bluelands’ asking price, but that he would pay Bluelands $10,000 to keep the offer to buy the land at $150 million open for 30 days. Bluelands’ CEO, agreed and wrote in a piece of paper that in exchange for $10,000 Bluelands was giving Red-Holdings the option to buy the land in question within 30 days at a $150 million price. Red-Holding’s CEO then gave Blueland’s CEO a $10,000 check which they promptly cashed. On day 20th, Red-Holdings met and it unanimously agreed to buy the land from Bluelands at $150 million. That same day, its CEO sent Blueland’s CEO a fax confirming that they were accepting Blueland’s offer to buy the land. Upon receiving the fax, Blueland’s CEO called Red-Holdings to inform them that the offer was off the table and that the price for the land was now $200 million, which Red-Holdings refused to pay. Two days later billionaire Tom Richboy offered to buy the land from Bluelands for $200 million. Red-Holdings is now demanding that Bluelands honor its word and sell them the land for the original offered price.
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