Brian,an agent for Clarion Motors,Inc.,writes a letter to Dina on November 1 stating that he will sell her a 2016 Subaru Outback for $20,000 between November 1 and December 31. Brian's letter to Dina is
A)a merchant's firm offer.
B)an acceptance.
C)an option contract.
D)none of the choices.

Question

Quizplus · Accepted Answer

Brian's letter to Dina is a merchant's firm offer because it is a definite and specific offer made by him as a merchant, with a specific time limit and a specific price. This offer is made in the ordinary course of business, and is designed to create a binding contract if accepted by Dina within the time limit specified. Therefore, option C (an option contract) is not the best choice, since it would require Dina to make a separate payment for the right to purchase the vehicle at the agreed-upon price. Option B (an acceptance) is also not the best choice, since Dina has not yet accepted the offer.

Brian,an Agent for Clarion Motors,Inc