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.

Question

Quizplus · Accepted Answer

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.

Rahul Met Jones at a Street Corner and Made a Verbal