Peter places an advertisement in the paper that says he will sell his car for $8,000. Giovanni writes to Peter in response to the advertisement and offers to buy his car for $6,500. Peter receives Giovanni's offer on March 3 and telephones him to ask whether he will consider increasing his offer. Giovanni tells him he will think about it. Matthew writes a letter to Peter, offering to buy his car for $7,000. Peter receives the letter on March 5. He writes back to Matthew the same day and tells him he will sell the car for $7,000. Matthew receives the letter on March 7 and writes back the same day advising Peter that he accepts the offer to buy the car for $7,000. Unfortunately, the letter is lost in the mail, and Peter never receives it. Giovanni writes to Peter on March 5 stating that he will pay him $7000 for his car by paying him $3,000 now and $4,000 in one month. Peter receives Giovanni's letter on March 8 and telephones Giovanni the same day to confirm that the payment terms are acceptable. Peter then receives a telephone call from Matthew on March 9 where he learns of Matthew's acceptance by letter dated March 7. Peter then tells Matthew he now wants $8,000 for the car. Is Peter bound to sell his car to either Giovanni or Matthew? Why or why not?

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The scenario youve described involves elements of contract law Lets break down the events and analyze whether Peter is bound to sell his car to either ... View the full answer