Question

1. Joseph offered to sell Chelsea his electric bicycle for $650. Chelsea told Joseph she would be happy to buy his bicycle, and asked if the price included an extra tire. Joseph said there was no extra tire. Chelsea then agreed to pay $650 for the bicycle, but Joseph refused to sell stating that he now wanted $750 for the bicycle and that Chelsea had made a counteroffer when she mentioned an extra tire. Discuss whether or not Joseph may insist on receiving $750 for the bicycle.

Answer 1

Joseph must sell for $650

Step-by-step explanation:

A contract is formed when there is an offer and an acceptance.

When Joseph made the offer of $650, Chelsea only made an inquiry on the extra tyre. She was now willing to buy without the extra tyre for $650. So the contract has been formed.

Joseph is now saying Chelsea made a counteroffer (which is not true) and he wants to sell at $750.

A binding contract has already been made for $650 and Joseph must honor it.