Question

Tracey’s photograph of the Lincoln Memorial is hanging in the Lincoln Gallery. Ashley is looking at it and Tracey tells Ashley, "Sell it to you for $10,000." Ashley says, "Go pound sand, that’s too much for this photo shopped picture!" The next day, Ashley reconsiders and goes to the gallery and tells Tracey she’ll take it for $10,000. Which is true at this point?

(A) Tracey can tell Ashley to "go pound sand" and that the price is now $25,000.
(B) Ashley can’t force Tracey to take the $10,000 because of the prior day’s revocation.
(C) If they can’t agree, a court would set the price at the fair market value of $5,000.
(D) Ashley’s acceptance of the $10,000 offer is effective only if Tracey has not yet revoked his offer.

Answer 1

The answer is: B) Ashley can’t force Tracey to take the $10,000 because of the prior day’s revocation.

Step-by-step explanation:

An offer is valid only if it was accepted unconditionally. If it was rejected, then the offer no longer exists. The only way for it to be valid again, would be if the offering party revived it.

When Tracey offered to sell her picture, the offer was valid. Once Ashley rejected it, the offer no longer existed. The only way Ashley can buy the picture now is that Tracey revives her offer. Tracy is free to keep or change the selling terms, and Ashley is free to accept them or not.