Question: Dalton Jewelers in Chicago engaged in lengthy negotiations with Repp Realty Company in New York City for the purchase of a new building. The price of the building kept the parties from concluding an immediate agreement. Repp's written offer to sell was $500,000. The representative for Dalton Jewelers finally replied by telegram offering $400,000, saying, "Take it or leave it." Repp Realty filed the telegram for future reference but did not respond.
Dalton then sent a letter stating that Repp should disregard its prior communication offering $400,000 and that it accepted the offer of $500,000. Repp Realty wrote back stating, "The price is now $600,000. Take it or leave it." Dalton promptly sent a telegram to Repp Realty saying that it held Repp to its original offer of $500,000. Is Repp legally bound to sell the building to Dalton Jewelers for $500,000?