Asked by
Little Bunny
on Dec 18, 2024
Verified
Rahul met Jones at a street corner and made a verbal offer to buy his canoe for $200. Jones replied that he would "think about it." Rahul nodded affirmatively. The two then went about their separate business. Later in the day, Rahul met Brown, who also had a canoe for sale, and Rahul offered to purchase Brown's canoe for $175. Brown agreed to sell Rahul his canoe. At 4 p.m. the same afternoon, after Rahul and Brown had made their arrangement, Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe. Rahul and Jones established a binding contract when Jones telephoned Rahul and accepted Rahul's offer to buy his canoe for $200.
Verbal Offer
An offer made orally, rather than in written form, in the context of negotiations or agreements.
Binding Contract
An agreement between two or more parties that is legally enforceable and subject to legal remedies or damages in case of breach.
Separate Business
An entity or operation that functions independently from any other business interests held by the owners.
- Uncover and explain the demands and circumstances crucial for a contract to be legally constitutive.
- Recognize the significance of acceptance timing and communication in contract law.
Verified Answer
EB
Learning Objectives
- Uncover and explain the demands and circumstances crucial for a contract to be legally constitutive.
- Recognize the significance of acceptance timing and communication in contract law.