In general, I agree with the passage below, because it reflects 
the major tenets of the UCC (Uniform Commercial Code).  A 
couple of clarifications and additions are in order.

For starters, the UCC is assemblage of rules/codes that effect 
commerce, particularly interstate commerce.  As such, any 
transgressions against the UCC are typically litigated in 
*State* courts, and the State UCCs, typically govern tort 
actions, unless a class action is assigned(although not 
always), or too much divergence on individual State UCCs 
precludes assignment of the case to a State Court.  

Most states have more restrictive definitions for contracts, 
with nearly all of them having provisions for a fourth aspect, 
namely "competent parties".  Here is a representative 
definition from the state of California, which addresses this 
as a "contract defense", rather than a principal component of a 
legal contract:

Capacity of the Parties

In order to be bound to a contract, the parties must be 
competent to enter into such a legal arrangement. Underage 
persons, persons who are mentally ill, and intoxicated persons 
are usually not held to the contracts they enter. However, a 
minor may have the option of enforcing a contract. 

More here:

http://www.lectlaw.com/def/c078.htm

http://www.lectlaw.com/def/c123.htm

I assume that all parties to the transaction meet the criteria 
specified above.

Regarding the rest of the post below, it is generally correct 
and coincides with my knowledge of the UCC and government 
contracting.  While I am hardly a lawyer (nor would I want to 
be:-), I did work in government contracting for nearly four 
years, a better part of that time spent as a Contracting 
Specialist.

Back to your regularly scheduled tech talk channel.

HTH,

Paul Werner

> I feel it necessary to respond to this issue at this point in 
time.  I
> do
> not know Debbie, nor have I communicated with her in any way 
and I do
> not
> intend to do so regarding this issue.  I try to never judge a 
company or
> person before hearing BOTH sides of the story.  However, 
since you felt
> it
> necessary to weigh-in on Debbie's email.  I will now act as 
judge on
> what
> appears to be the facts.
> 
> I do not know what country either your company or Debbie are 
operating
> in,
> however I can only quote United States UCC (Uniform 
Commercial Code)
> which
> applies to ALL transactions in ALL states, whether by private 
parties or
> public businesses.
> 
> Only Three things must exists for a legal contract to exist:
> 
> 1 - An Offer
> Debbie's submission of her $100 bid to your system.
> 
> 2 - Acceptance
> Your email back to Debbie stating that her offer had been 
accepted
> 
> 3 - Consideration
> When Debbie provided her credit card number to the Pay 
system, it is
> legally the same as placing cash in the hand of one of your 
company's
> employees.
> 
> Based on the evidence above, you both continue to have a 
legally binding
> contract and in addition, you both have written evidence of 
that
> contract
> (in other words, not a verbal contract) which makes the case 
very
> strong.
> 
> I am not a lawyer and this is based on my personal 
understanding of the
> law.
> 
> If both parties operate in the United States, your company 
not only made
> a
> very poor decision by not fulfilling your obligation to 
Debbie, you have
> also broken US commercial tort law.

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