Bob, a Merchant, Makes an Offer to Linda, Another Merchant

question 6

Multiple Choice

Bob, a merchant, makes an offer to Linda, another merchant, to buy 1,000 of her widgets in a signed letter containing all necessary terms of the offer. The letter states that Bob will keep the offer open for three weeks from the day the offeree receives it. One week later, Bob writes another letter to Linda attempting to revoke his offer. Linda writes a letter to Bob accepting Bob's original offer before she receives his revocation. Which of the following statements is true of this situation?

• A) Linda's acceptance is effective and a contract is created.
• B) Bob's revocation is effective and no contract is created.
• C) Promissory estoppel prevents the formation of a contract in this situation.
• D) The offer cannot be revoked since it is an option offer.

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Definitions:

Psychological

Pertaining to the mind or to mental states and processes; relating to psychology.

Distress Criterion

A measure used in psychology to determine whether an emotional response to a situation is proportionate to the severity of the event.

Disruptive Behavior

Actions that interrupt or hinder proper function or proceedings, often referring to patterns of negative behavior in educational or social settings.

Societal Norms

Shared expectations and rules that guide behavior of people within social groups, which can vary between different societies or cultures.