business law

Mike Phelps placed an order with Kurbeck Cars, Inc., for a specifically optioned 2012 Limited Edition Ferrari Coupe.  The order form described the automobile and the options Mr. Phelps wanted, included the purchase price, and provided for delivery to the purchaser “A.S.A.P.”  Phelps signed the order form in the place designated for his signature and gave the dealer a $10,000 check as a deposit.  This check was deposited into the account of Kurbeck Cars and cleared.  On the same day that Phelps gave Kurbeck the check, Kurbeck placed a written order with  Ferrari Motors Corporation, for the 2012 Limited Edition Ferrari Coupe.  The order was placed on a form supplied by Ferrari, was signed by the dealer and listed Phelps as the “customer.”  About a month later, Kurbeck sent Phelps a letter that explained that “market conditions” had made Phelps’ offer unacceptable and that his deposit of $10,000 was being refunded.  The vehicle was ultimately manufactured by Ferrari and delivered to Kurbeck.  Kurbeck sold this specific vehicle to a third party.  Phelps filed suit, but Kurbeck argued that they had no binding agreement.  Is Kurbeck correct?  Explain fully the legal issues. (150 words)