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

The $10 given by Pete to Ron constitutes consideration for Ron to keep the offer open for a specified period (a week), creating an option contract. Ron cannot revoke the offer during this period without breaching the contract.

Ron Offers to Sell Pete His Stamp Collection