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Alvin is a homeowner

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Alvin is a homeowner. On January 1st he wrote to Sure Insurance Company asking about fire insurance for his home. On January 10th, Sure Insurance offered Alvin fire insurance for $200 per year. On January 11th, Alvin placed a letter in the mail accepting the insurance company’s offer and closed a check for $200. A problem with the US mail causes Sure Insurance not to receive a letter until January 30th. On January 12th, Alvin’s house burned. Alvin made a claim to the insurance that was denied. Alvin wants to sue insurance because he believes he had contract with them.


  1. Who is the offeror in this problem and why?

  2. Who is the offeree and why?

  3. Is Alvin correct? Does he have a contract with Sure Insurance Company? Why or Why not?

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