First Principles of Business Law
Quiz: Making a contract 

Question 4

 

 

 

A says: “I will lease my apartment to the first person who agrees to pay me a rental of $300 per week.  B says: “OK, I’ll pay you a rental of $300 per week.” C immediately says: “No, wait, I am prepared to pay a rental of $350 per week.”   In the light of these facts, which one of the following answers is the most accurate? 

 

(a)  A’s statement is an offer ‘to the world at large’ to enter into a lease with a tenant at a rental above $300 per week.  Because it is obvious that A would want the highest rental, it is C’s statement that will be treated as the acceptance of A’s offer.

(b)  A’s statement is an offer ‘to the world at large’ to enter into a lease with a tenant at a rental above $300 per week.  B’s statement is a valid acceptance of that offer, after which it is too late for C to accept the offer.

(c)   A’s statement is not an offer: it is only an ‘invitation to treat’, made to the ‘world at large’.  Both B statement and C’s statement are offers made to A, and A can accept either one.

 

 

 

 

 

 

 

 

  
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