7. Seller offers to sell Buyer a boat for $500. Buyer replies, “I think I want t

Question

7. Seller offers to sell Buyer a boat for $500. Buyer replies, “I think I want the boat, but let me have a week to consider.” Seller replies, “OK. I won’t sell the boat to anyone until after one week from today.” The next day, Seller sells the boat to Popeye for $600. The day after that, Seller says he has already sold the boat. Nevertheless, Buyer tenders $500. a. Is Seller contractually liable to Buyer? b. Would you answer change if Seller were a merchant and his promise not to sell for a week were in writing?

Explanation / Answer

Ans:

a. No the seller is not contractually liable to the buyer because this condition is not comming under the perview of Forward Trading contract.

b.Yes definitely i would like to change my answer that, if both buyer and seller are bind with written contract document, it fullfill the criteria of forward trading. So the seller will be liable to the buyer as he/she breaches the contract.

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