Asked by Sukhkaran Dhaliwal on Jul 09, 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 Brown established a binding contract which both parties are obliged to perform.
Binding Contract
A legally enforceable agreement between two or more parties that is bound by law and has legal obligations.
Verbal Offer
An offer made through spoken communication rather than in written form, which can be legally binding under certain conditions.
Affirmatively
In a manner that expresses agreement or conformation; also, acting in a positive or confirming way.
- Detect and detail the requirements and preconditions for establishing a contract that is legally binding.
- Comprehend the relevance of the timing of acceptance and the means of communication in context to contract law.
Verified Answer
DV
Daniel VillalobosJul 14, 2024
Final Answer :
True
Explanation :
Rahul and Brown formed a binding contract when they agreed on the sale of Brown's canoe for $175, making Rahul's earlier verbal offer to Jones irrelevant once Jones decided to accept it after Rahul had already entered into another contract.
Learning Objectives
- Detect and detail the requirements and preconditions for establishing a contract that is legally binding.
- Comprehend the relevance of the timing of acceptance and the means of communication in context to contract law.