Joe Made an Offer to Sell His Car to Harry

question 90

Essay

Joe made an offer to sell his car to Harry, promising to keep the offer open for a week. However, he changed his mind, sold the car to someone else, and phoned Harry to inform him that he was withdrawing his offer because he had sold the car to someone else. Harry was angry and said that he wanted the car and was going to hold him to his promise to hold the offer open for a week. He sued for breach of contract. Will he win? Explain.

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Definitions:

Overconfidence Effect

A cognitive bias where an individual's subjective confidence in their judgements is reliably greater than their objective accuracy, especially when confidence is relatively high.

Judgments

Legal decisions made by a court regarding the rights and liabilities of parties in a legal action or proceeding.

Opinions

Opinions are personal beliefs or judgments that are not necessarily based on fact or knowledge.

Hindsight Bias

The tendency to believe, after an outcome is already known, that one would have foreseen it, often referred to as the "I-knew-it-all-along" effect.