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 acceptance by Jones was ineffective because Jones did not reply to Rahul by way of a written acceptance.

Question

Quizplus · Accepted Answer

The acceptance by Jones was ineffective because there was no meeting of the minds when the offer was initially made, and Rahul had effectively revoked his offer by entering into a contract with Brown before Jones had accepted the offer. In contract law, an offer can be revoked before acceptance, and verbal agreements can be legally binding if they meet the criteria for contract formation.

Rahul Met Jones at a Street Corner and Made a Verbal