Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when
A) Ray offered to sell his iPod.
B) Ray exchanged his iPod for $50.
C) Steve promised to pay Ray for the iPod.
D) Steve paid Ray $50 for the iPod.

Question

Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when
A) ​Ray offered to sell his iPod.
B) ​Ray exchanged his iPod for $50.
C) ​Steve promised to pay Ray for the iPod.
D) ​Steve paid Ray $50 for the iPod.

Quizplus · Accepted Answer

A contract was created when Steve promised to pay Ray for the iPod, as this constitutes an offer and acceptance, forming a binding agreement.

Ray Promises to Give Steve His IPod in Exchange for Steve's