Question

Julius asks Rachel if she would like to sell her boat. Rachel privately has no interest in selling her boat, and believes that Julius can't afford her boat anyway. Rachel says, "I'd sell my boat to you for $20,000." To Rachel's surprise, Julius responds "Ok, it's a deal." Rachel does not want to sell the boat to Julius for any price. Julius and Rachel have:a. not formed a valid contract because of lack of definiteness in the contract terms.b. not formed a valid contract because Rachel did not want to sell the boat for any price.c. formed a valid contract because Rachel's outward expressions showed the formation of a contract.d. formed a valid contract because Julius expressed outward interest in the boat.

Answer 1

The correct option is (c)

Step-by-step explanation:

A contract is treated valid when both the offeror and offeree agrees to the conditions in the contract. The acceptance could be written or expressed. the second condition of a valid contract is that something of value needs to be exchanged like money, goods or services.

In this case, Julius made an offer to purchase Rachel's boat. Rachel with no intention to sell, expressed acceptance to sell for $20,000 to which Julius agreed. This is a valid contract as Rachel accepted the offer for a consideration.