James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:
A) when Brenda tells James she will buy the boat.
B) when Brenda gets the money from the credit union.
C) when Brenda applies for the loan at the credit union.
D) only when James gets the $3,000.

Question

Quizplus · Accepted Answer

A contract is formed when both parties come to an agreement on the terms and conditions of the sale. In this scenario, the agreement is made when Brenda tells James she will buy the boat for $3,000. Payment is a separate issue and does not affect the formation of the contract.

James Offers to Sell His Fishing Boat to Brenda for $3,000