The owner of a small business is having lunch with an employee.He says,"I'm so tired of the problems that we are having lately that I would sell the entire business to you now for a nickel!" The employee quickly slams a nickel on the table and exclaims,"I accept!" Is there a valid contract?

Question

Quizplus · Accepted Answer

The best choice is D because the statement made by the owner was likely a joke or an invitation to negotiate rather than a serious offer. Therefore, there was a lack of objective intent to be bound by a contract. Additionally, the consideration of a nickel is clearly inadequate for the sale of an entire business.

The Owner of a Small Business Is Having Lunch with an Employee.He