Bogdan, a painter, offers to sell his painting to Mirka for $90. Mirka responds that she needs more time to think about Bogdan's offer. Then Bogdan dies, and the value of the painting escalates. Mirka calls Bogdan's widow, Gizela, and says "I accept Bogdan's offer." Which of the following statements is true of the case?
A) There is a binding contract entitling Mirka to the painting.
B) There is a binding contract entitling Mirka to the painting if she did not know Bogdan was dead when she called Gizela.
C) There is no binding contract entitling Mirka to the painting under any circumstances.
D) There is no binding contract entitling Mirka to the painting unless she actually pays Gizela the $90.

Question

Quizplus · Accepted Answer

In the given scenario, there is no binding contract entitling Mirka to the painting under any circumstances. The death or insanity of either party to an offer automatically (without notice) terminates the offer. This is so because no "meeting of the minds" is possible when one of the parties has died or becomes insane.

Bogdan, a Painter, Offers to Sell His Painting to Mirka