Suppose that Dakiyah promises to pay Fernando $300 for his television.Fernando promises to sell Dakiyah his television for $300.The parties have not documented the transaction in writing.Which of the following is an accurate statement regarding this arrangement?

A) There is no contract between the parties because the promises are not in writing.
B) This is a unilateral contract.
C) This is merely an invitation to negotiate.
D) There is an oral contract.
E) Dakiyah's promise constitutes an offer,while Fernando's promise is a counteroffer.

Question

Karley Letter · Accepted Answer

Final Answer : D, Explanation :  In this example,an oral contract was created.Dakiyah's promise to pay Fernando $300 for the television is her consideration to Fernando.Fernando's promise to sell Dakiyah the television for $300 is his consideration to Dakiyah.There has been a mutual exchange of something of value-a promise to pay $300 and a promise to sell the television for $300.

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