Question

When olga asks sven if he wishes to sell his harley motorcycle, he replies that he would not sell it "for less than $2,000." olga replies, "i accept'" and hands him $2,000. do the parties have a contract? why or why not?

Answer 1

Olga may have formed a contract with Sven by accepting what she interpreted as an offer for his motorcycle and providing $2,000, though Sven's statement might constitute an invitation to treat rather than a firm offer.

Step-by-step explanation:

For a contract to be valid, it must contain certain elements: offer, acceptance, intention to create legal relations, and consideration. In the scenario described, Sven’s statement that he would not sell the motorcycle for less than $2,000 constitutes an invitation to treat, rather than a definitive offer. However, Olga interpreted this as an offer and indicated her acceptance by stating, “i accept” and handing over $2,000. This could be argued as constituting a contract due to apparent agreement on the essential terms: the motorcycle and the price. The final determination of whether a contract exists depends on the interpretation of the communication between the parties and their conduct.