Problem on contract liability


Problem: 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.

1. Is Scott contractually liable to Cliff?

2. 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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Business Law and Ethics: Problem on contract liability
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