Question

Steve writes a novel and sends it to Penny Publishing. Penny offers Steve $5,000 for a six-month option on the work, and Steve accepts the money. Nine months later, Penny has still not agreed to publish, and Biggie Publishing offers Steve $50,000 for the novel. Steve wants to accept.

Can he legally do so?

a. Yes, because the offer of $50,000 is greater than Penny's offer.
b. Yes, because nine months have passed.
c. Yes, because penny paid him for the option to publish his book.
d. No, because a person may not accept two offers for the same item.

Answer 1

Answer: b. Yes, because nine months have passed.

Step-by-step explanation:

Steve accepted money from Penny Publishing thereby getting into a contract with them.

However the contract gave them a six-month option on Publishing.

At the end of 9 months, three months after their option expired, Steve was approached by Biggie.

Seeing as the contract time with Penny Publishing of 6 months has expired and they still did not publish, Steve is free to offer the rights to another Publishing company.

If you need any clarification do react or comment.