Is there a contract between Joyce and Hill? Explain.

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Is there a contract between Joyce and Hill? Explain.

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In consideration of $1,800 paid to him by Joyce, Hill gave Joyce a written option to purchase his house for $180,000 on or before April 1. Prior to April 1, Hill verbally agreed to extend the option until July 1. On May 18, Hill, known to Joyce, sold the house to Gray, who was ignorant of the unrecorded option. On May 20, Joyce sent an acceptance to Hill, who received it on May 25. Is there a contract between Joyce and Hill? Explain.

Explanation & AnswerSolution by a verified expert

Explanation

Bargained-for exchange is giving something in exchange ofperformance or return.
Individual H offered to sell theirhouse to Individual J in consideration ofthe borrowing.
Individual J has not given acceptance within the time of expiration of the offer.
For legal enforcement the extended offer should have been given in writing. As the extension is not in writing, it can be withdrawn by the offeror at any time.
There was nokind of contract between Individuals H and J

Sample Response

Individuals H and J do not have a contract as promised due to the expiration of the contract. Based on the bargained-for exchange, Individual H has promised the option of purchase to Individual J before April 1.
Though the offer was extended to July 1 verbally, it was not given in writing as per the requirement of statute of frauds. Individual J did not show the intent of buying the property within the time mentioned in writing.
The acceptance given by Individual J was too late as the sale was already made. For this reason, it is not enforceable. Individual J also had the knowledge of the sale of the propertyto Individual G. Verbal offer made did not have any consideration because of which it existed until any changes were made by the offeror, that is,Individual H.

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