Seller called Buyer on the telephone and offered to sell his used stereo. Buyer agreed to buy it without asking the price. The next day Buyer changed her mind and attempted to back out of the agreement. Do the parties have a contract? Explain.

Question

Tiana

Business

29 September, 09:22

Seller called Buyer on the telephone and offered to sell his used stereo. Buyer agreed to buy it without asking the price. The next day Buyer changed her mind and attempted to back out of the agreement. Do the parties have a contract? Explain.

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Answers (2)

Know the Answer?

Blaine Chambers · Answer 1

Answer: no contract as agreed price was not discussed

Alfonso Singleton · Answer 2

No, the buyer and seller did not have a contract because the basic requirements for a contract was not fulfilled.

Explanation:

For a contract to be valid, it must have four key elements: agreement, capacity, consideration, and intention.

In this case, the seller called the buyer and offered to sell his used studio, buyer agreed to buy it but did not ask for the price.

Agreement does not entail the price is already invalid.

That gave the buyer liberty to change his mind and attempt to back out of the previous agreement.