Fact Pattern 7-1
Prudence offered to sell her car to Danny for $3,000. Danny was not sure what to do, so he asked Prudence if she would hold the offer open for him for one week for $50. Prudence said sure, and the parties signed a contract to the effect that Prudence would hold the car. A few hours, Bobby unexpectedly offered Prudence $3,500 for the car, and Prudence sold it to him on the spot. Danny decided to buy the car, but when he came by to pick it up the next day, it was gone. Prudence gave Danny his $50 back telling him that was her only obligation and that if he had any complaints, he could take it up with Bobby. Danny found a similar car the next week for $3,500 and purchased it.
-Refer to fact pattern 7-1. Did Danny have any type of contract with Prudence,and if so what type?

Question

Quizplus · Accepted Answer

Danny had an option contract with Prudence, as he paid $50 to have the offer for the car held open for one week. This option gave Danny the right to buy the car at the specified price within the one-week timeframe. However, Prudence breached the contract by selling the car to Bobby instead, leaving Danny without the opportunity to exercise his option.

Fact Pattern 7-1 Prudence Offered to Sell Her Car to Danny for $3,000