Fact Pattern 7-1
Prudence offered to sell her car to Danny for $3,000. Danny was not sure what to do, so he asked Prudence if she would hold the offer open for him for one week for $50. Prudence said sure, and the parties signed a contract to the effect that Prudence would hold the car. A few hours later, Bobby unexpectedly offered Prudence $3,500 for the car, and Prudence sold it to him on the spot. Danny decided to buy the car, but when he came by to pick it up the next day, it was gone. Prudence gave Danny his $50 back telling him that was her only obligation and that if he had any complaints, he could take it up with Bobby. Danny found a similar car the next week for $3,500 and purchased it.
-Refer to Fact Pattern 7-1.What damages,if any,could Danny likely collect against Bobby in litigation over the car?
A) None
B) Reliance damages consisting of $500
C) Incidental damages consisting of $50
D) Compensatory damages consisting of $500

Question

Quizplus · Accepted Answer

Danny cannot collect damages from Bobby because Bobby was not a party to the contract between Prudence and Danny. Bobby acted in good faith without knowledge of the option contract.

Fact Pattern 7-1 Prudence Offered to Sell Her Car to Danny for $3,000