Asked by Anisha Baksh on Jul 27, 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. The contract between Rahul and Brown automatically rescinded the offer which Rahul had made to Jones.
Rescind
To officially cancel, revoke, or repeal a legal agreement, contract, or decision.
Verbal Offer
An offer made through spoken communication, rather than in written form, which can be binding under certain conditions.
Binding Contract
An agreement between two or more parties that is enforceable by law.
- Explore and articulate the specifications and conditions vital for the legal effectiveness of a contract.
- Examine the legal obligations of parties in a sales agreement.
Verified Answer
AS
AmanDeep SinghAug 01, 2024
Final Answer :
False
Explanation :
The contract between Rahul and Brown does not automatically rescind the offer Rahul made to Jones. Rahul's offer to Jones was still open until Rahul explicitly revoked it or until Jones was informed of Rahul's deal with Brown, which could serve as an implied revocation.
Learning Objectives
- Explore and articulate the specifications and conditions vital for the legal effectiveness of a contract.
- Examine the legal obligations of parties in a sales agreement.