Alice offers to sell her car to Bob for text 5,000 . She says, 'I will keep this offer open for 10 days.' Three days later, Alice sells the car to Charlie. Bob hears about the sale to Charlie from a mutual friend and immediately calls Alice to accept the offer. Is there a contract between Alice and Bob?

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The Title 28 of the United States Code QUESTION #3712

Question 1

Alice offers to sell her car to Bob for $\text{\$5,000}$. She says, 'I will keep this offer open for 10 days.' Three days later, Alice sells the car to Charlie. Bob hears about the sale to Charlie from a mutual friend and immediately calls Alice to accept the offer. Is there a contract between Alice and Bob?

Yes, because Alice promised to keep the offer open for 10 days.
No, because the offer was revoked when Alice sold the car to Charlie and Bob learned of it.✔️
Yes, because Bob accepted before the 10-day period expired.
No, because the car was already gone, making the contract 'physically impossible.'

Correct Answer Explanation

Under common law, an offer can be revoked at any time before acceptance unless there is consideration to keep it open (an option contract). Revocation is effective when the offeree receives reliable information that the offeror has taken action inconsistent with the offer (indirect revocation).

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