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    Contract Liability

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    Scott offers to sell Cliff a boat for $500. Cliff replies, 'I think I want the boat, but let me have a week to consider.' Scott replies, 'OK. I won't sell the boat to anyone until after one week from today.' The next day, Scott sells the boat to Bill for $600. The day after, Scott tells Cliff he already sold the boat. Nevertheless, Cliff tenders $500.

    a. Is Scott contractually liable to Cliff?
    b. Would your answer change if Scott were a merchant and his promise not to sell for a week was in writing?

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    Solution Preview

    a. In this case, Scott would be contractually liable to Cliff, due to the fact that these individuals engaged in a verbal agreement which is legally binding in almost all jurisdictions. Cliff asked Scott to agree to let him have a week to ...

    Solution Summary

    This solution discusses liabilities included in a contract.