Booksellers,Inc.makes a written offer to sell Smallville City Library 20,000 books at $5 each.In writing,Booksellers also agrees to keep the offer open for sixty (60) days.However,before the 60 days have passed,Booksellers sells all the books to Universal Library for $7 each.Which of the following is true of this situation?

A) Smallville cannot file a legal claim,since a firm offer may be revoked prior to acceptance.
B) Smallville can file a legal claim,since Booksellers agreed to hold the offer open,even though no consideration was given.
C) Smallville had not taken possession of the books,nor paid any of the purchase prices,and hence cannot file a lawsuit.
D) Smallville can bring a lawsuit,since Booksellers engaged in bait-and-switch tactics.

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Daniel Martin · Accepted Answer

Final Answer : B, Explanation :  Booksellers made a firm offer to Smallville City Library and agreed to keep it open for sixty days. Even though no consideration was given, this offer was binding and created an option contract. Therefore, Smallville has the right to accept the offer within the sixty-day period, and Booksellers cannot revoke the offer during that time. By selling the books to Universal Library before the sixty days have passed, Booksellers has breached the option contract and Smallville can file a legal claim for damages.

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