Karen Offers to Sell Her Antique Rocking Chair to Her

Karen offers to sell her antique rocking chair to her friend Julie for $350. Julie has always loved the rocker but, since she is currently short of money, she says to Karen "I will buy the rocker from you, and I'll pay half now and half next month." Don, who has been listening, says "I've always wanted that rocker, too, Karen. I'll pay you $400 cash right now for it."

A) Since there is a contract between Karen and Julie, Karen cannot sell the rocker to Don.
B) Karen's offer has lapsed so she may sell the rocker to Don.
C) Karen must first revoke her offer to Julie before she can accept Don's offer, since a clear acceptance now by Julie would create a contract between them.
D) Julie's inquiry as to whether she could pay in two instalments did not cause Karen's offer to lapse and she can still accept it.
E) C and D.