Ray promises to give Steve his iPhone in exchange for Steve's promise to pay Ray $200. Later, they exchange the iPhone for the funds. A contract was created when
A) Ray offered to sell his iPhone.
B) Ray exchanged his iPhone for $200.
C) Steve promised to pay Ray for the iPhone.
D) Steve paid Ray $200 for the iPhone.

Question

Quizplus · Accepted Answer

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

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