Question

Two individuals, Lap and Top negotiate for Lap to buy Top's computer. The following exchange takes place:

Lap: "I'll buy your computer for $275.00."
Top: "That sounds good."
Lap: "Great, the USB (flash drive) is included.

Which following statement is true?

a.Lap and Top have a contract for the computer at $275.00, but without the USB.

b.Lap and Top do not have a contract for the computer at $275.00.

c.Lap and Top have a contract for the computer at $275.00, including the USB.

d.Lap and Top have no contract because of the added USB drive.

e.None of the above.

Answer 1

d. Lap and Top have no contract because of the added USB drive.

Step-by-step explanation:

For a contract to be binding it must:

• Have a legal purpose.
• Both parties must have a mutual agreement. In our case, it was not stated if Top agreed to selling his computer with the USB included.
• Each party must agree to give up something of value in exchange for another something of value. While Lap and Top have agreed to exchange Top's Computer for Lap's $275. Top has not really agreed to part with his USB.