Ron offers to sell Pete his stamp collection.Pete gives Ron $10 to induce him to keep his offer open for a week.If Ron decides on day four of the week that he really does not want to sell to Pete,he can revoke his offer without fear of a breach of contract lawsuit being filed against him.

Question

Quizplus · Accepted Answer

The $10 given by Pete to Ron is considered consideration for an option contract, which legally binds Ron to keep the offer open for the specified period, making it impossible for him to revoke the offer without potentially facing a breach of contract lawsuit.

Ron Offers to Sell Pete His Stamp Collection