[Car Trouble] Jennifer wants to sell her car and Timmy agrees to purchase it.Jennifer and Timmy become involved in an over-the-phone negotiation and settle on a price of $1,000.Jennifer lives three hours from Timmy but agrees to deliver the car to him in his home state and take the bus back,provided Timmy promises to purchase the vehicle.She drives three hours.Upon arrival,Timmy says he will not purchase the vehicle unless Jennifer agrees to go to the dealer,get a second set of $500 SmartKeys,and mail the keys to Timmy within three weeks.Having driven all that way,Jennifer agrees.Timmy gives Jennifer the $1,000,using money he borrowed from Joe and promised to repay.Jennifer accepts the money and leaves.Jennifer never sends Timmy the second set of keys.Timmy later decides the car is worth only $500.He decides not to pay Joe and instead gives the vehicle to Joe,explaining his plan.Joe accepts the car and drives away,secretly planning to sue Timmy for the rest of the money.When Timmy is sued by Joe,he makes a claim against Jennifer and claims she should have to compensate him for losses because they never had a valid contract since the car was not worth the $1,000 Jennifer claimed it was.
-Did Jennifer and Timmy have a valid contract?
A) No because the car was not worth what Timmy paid for it.
B) Yes because there was a bargained-for exchange and a mutual exchange of promises.
C) No because Jennifer did not send the second set of keys back to Timmy.
D) Yes because of promissory estoppel.
E) Yes because of the UCC.
Correct Answer:
Verified
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