Question

Patrick offered to sell his house to Jarrod for $50,000. Jarrod was interested but did notwish to decide immediately so he asked Patrick if he would hold the offer open for thirty daysin exchange for fifty dollars. Patrick agreed.
Three days later Jarrod called Patrick and told him he doubted he would purchase the property because his family was not enthusiastic about moving, but he was still trying toconvince them to relocate. The next week, Patrick sold the house to Nick.

a. Jarrod may no longer accept the offer because Patrick changed his position.
b. Jarrod still may accept the offer because Patrick’s offer was irrevocable for 30 days.
c. Jarrod still may accept the offer because his telephone conversation did not constitutea rejection and the option period has not expired.
d. Jarrod still may accept the offer because a rejection never terminates the power of acceptance in an option contract.

Answer 1

Answer:

a. Jarrod may no longer accept the offer because Patrick changed his position.

Explanation:

A contract is formed when there is an offer by the offerer and an acceptance by the recipient. However the offered has the right to revoke the offer at any time during the offer period, then the recipient will not be able to accept it.

In the given scenario Patrick offered to sell his house to Jarrod for $50,000. Jarrod was interested but did not wish to decide immediately so he asked Patrick if he would hold the offer open for thirty days.

So Jarrod had not accepted to offer.

Patrick has the right to revoke the offer and sell to someone else.

However Jarrod will be entitled to his 50 dollars back.