Mary bought a new computer and advertised her old computer for $1500. Mr. Jones offered to pay $1000. Mary said no, she wanted $1500. Mr. Jones offered $1250. Mary rejected that and said she wanted $1500, but then said to him, "I withdraw my offer, I've decided to give it to a school and apply for the tax benefit." Mr. Jones said, "All right, I'll accept your offer of $1500." Which of the following is true?
A) There is a contract because at some point in time Mary was willing to sell and Mr. Jones was willing to buy the computer system for $1500.
B) There is no contract because the last offer had lapsed.
C) There is no contract because Mary revoked the offer before Mr. Jones attempted to accept it.
D) There is a contract, because once a seller makes an offer she cannot change her mind; she is bound to receive an acceptance.
E) There is a contract and Mr. Jones has to pay a reasonable price for Mary's old computer.

Question

Quizplus · Accepted Answer

Mary effectively revoked her offer to sell the computer for $1500 when she informed Mr. Jones that she had decided to give it to a school instead. Therefore, when Mr. Jones attempted to accept the offer after it was withdrawn, there was no longer an offer on the table to accept, making it impossible for a contract to be formed under these circumstances.

Mary Bought a New Computer and Advertised Her Old Computer