Seller says to Buyer Bob: \"I\'ll sell you my bicycle for $400.\" Buyer Bob says

Question

Seller says to Buyer Bob: "I'll sell you my bicycle for $400." Buyer Bob says: "Great, but I can only pay you
$200 now. I'll pay you the other $200 next Friday and pick up the bicycle then." Seller responds: "Well, I
wouldn't do this for everyone, but since I know you’re a man of your word, Bob, I’ll take that deal.” Buyer
Bob and Seller shake hands to show their agreement. Which of the following statements is true:

- If Seller can find a different buyer who will pay him $400 all in cash, he can revoke his offer to - Buyer Bob.
- Seller and Buyer have entered into a contract.
- There is no contract between Buyer Bob and Seller under the mirror image rule.
- If Buyer Bob changes his mind, he does not have to buy Seller's bike.
- There is no contract between Buyer Bob and Seller because Buyer Bob's initial response was a
counter offer.

Explanation / Answer

The true statement is Seller and Buyer have entered into a contract.

Other statements are the condition as if those things are done as told in other statements then it is a breach of contract. And in that condition futher, legal proceedings for the breach of contract will take place.

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