Asked by Michelle Chrisette on Jul 07, 2024
Verified
Tom offers to buy Jenny's fishing tackle for $500, but she says she wants $600. Tom then proposes a price of $550, but Jenny says she is not interested. Tom is afraid she will walk away from a deal, so he says "OK. I'll accept your offer to sell for $600." There is now a contract between them.
Fishing Tackle
Equipment and accessories used for angling or fishing, including rods, lines, hooks, lures, and floats.
Proposed Price
The initial price suggested by a seller or contractor before any negotiations or adjustments.
Contract
An agreement between parties creating mutual obligations enforceable by law.
- Identify and interpret the conditions and prerequisites indispensable for a contract to be considered legally enforceable.
- Understand the role of intention in the formation of legal contracts.
Verified Answer
GA
Gökçe ArugünJul 12, 2024
Final Answer :
False
Explanation :
Jenny's statement that she wants $600 after Tom's offer of $550 constitutes a rejection of Tom's offer and a counteroffer. When Tom agrees to the $600, he is accepting Jenny's counteroffer, thus forming a contract at that point, not before.
Learning Objectives
- Identify and interpret the conditions and prerequisites indispensable for a contract to be considered legally enforceable.
- Understand the role of intention in the formation of legal contracts.