Mr. Goode, a neighbour of your parents, offered to sell you his house for $400,000, a bit below market value. You are definitely interested but would like to see if your employment contract will be renewed and want to check about financing. Mr. Goode says that he'll hold the offer open for you until May 1st. On these facts, which of the following is false?
A) Mr. Goode will be bound to hold it open if you pay him and he accepts some money to hold it open until that date.
B) Mr. Goode will be bound to hold it open if you offer and he accepts your offer to wash his car every Saturday morning for two months in exchange for his promise to hold it open.
C) Mr. Goode will be bound to hold it open until that date if his promise to do so was written and under seal.
D) Mr. Goode's promise to hold it open is sufficient; the offer is safe until May 1st, when it will expire.
E) If you buy an option to buy a house, you still don't have to buy the house.

Question

Quizplus · Accepted Answer

Mr. Goode's mere promise to hold the offer open until May 1st, without consideration (such as payment or a service in return), does not legally bind him to keep the offer open. Offers can generally be revoked before acceptance unless supported by consideration or a formal option contract is in place.

Mr Goode, a Neighbour of Your Parents, Offered to Sell