Alan, wanted to sell his large flat screen TV, which he had originally purchased for $700.

He spoke to his friend John on Monday saying to him, "I'll sell you my flat screen TV for

$ 400 if you want to buy it."

John answered, "Sorry, that's more than I want to pay. I'll pay you $325 for the TV."

"That's not enough," Alan answered.

The following day, Tuesday, John called Alan and said, "I've changed my mind; I will buy your TV for $400."

Alan answered, "I've changed my mind too. I've decided to keep the TV."

Question 1.A.(5 points)

What legal term describes Alan's first statement to John, telling John that he'd sell John his TV for $400?

Question 1.B. (5 points)

What legal term(s) describes John's first answer, telling Alan that $ 400 is more than he wants to pay, and stating that he will pay $325 for the TV?

And what, if any, is the legal effect of this, John's first answer?

Question 1.C. (5 points)

Has a binding contract been created by the above facts?Explain why or why not.

In doing so, explain the applicable legal principles, and how they apply to the facts.

Facts for Question 1.D.

Assume the following set of facts, rather than those listed for Questions 1 A through C:

Alan, wanted to sell his large flat screen TV, which he had originally purchased for $700.

He spoke to his friend John on Monday saying to him, "I'll sell you my flat screen TV for

$ 400 if you want to buy it."

John answered, : "My budget is kind of tight this month; I'm not sure I could handle that much. Would you take $325 for the TV?"

"That's not enough," Alan answered.

The following day, John called Alan and said, "I've come up with some extra cash, and I will buy your TV for $400."

Alan answered, "You can't, because I've changed my mind. I've decided to keep the TV."

Question 1 D:(5 points)

Was a binding contract formed by the "Facts for Question 1. D?"

Explain why or why not. In doing so, state the legal principles and how they apply to the facts.