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. Brown's acceptance of Rahul's offer was unconditional.

Question

Quizplus · Accepted Answer

Rahul's offer to Jones was not accepted at the time it was made, and he was free to make another offer to Brown, which was accepted. Once Brown accepted Rahul's offer, a contract was formed, and Rahul was no longer obligated to Jones.

Rahul Met Jones at a Street Corner and Made a Verbal