Legal Question in Business Law in Minnesota

While at the bank, John saw a notice posted which said the following:

"For Sale - Prime Recreational Property. Only 1 hour from town. Call Mary - 555-2345"

John called Mary and asked if she would be willing to sell the property for $250,000. Mary responded that she would have to get at least $300,000. John stated that Mary's offer sounded interesting and asked if he might have a 30-day option. Mary said that was fine and gave John the following writing:

"In consideration of $1.00 (one dollar) paid by John, Mary will sell her recreational property to John for $300,000. This option good for 30 days."

(signed) Mary

John never paid the $1.00 to Mary but two weeks later, after John had inspected the property, he wrote to Mary:

"I really like the property, but I still think your price is too high. Will you take $270,500?"

(signed) John

Mary received the letter but did not send a reply. The next week John was informed by Tim that Mary either had sold the property or was offering to sell it to Bob. John immediately went back to the office and sent Mary the following letter:

"Accept your offer to buy recreational property. Enclosed is my check for $300,000."

(signed) John

After the letter and check were mailed, but before they arrived, Mary died in a skiing accident. The next day, John's letter and check were duly delivered to Mary's mailbox.

Analyze and discuss whether there is a contract between John and Mary. Discuss the legal effect of the various communications between the parties.

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