Ron offers to sell Pete his stamp collection. Pete gives Ron $10 to induce Pete into keeping 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

Ron cannot revoke the offer because Pete gave consideration ($10) to keep the offer open for a week, creating an option contract that binds Ron to keep the offer open for that period.

Ron Offers to Sell Pete His Stamp Collection