Several years ago, Ted had purchased a Fender electric guitar. Unfortunately, his lack of talent and unwillingness to practice got in the way of his dream of becoming a rock star. Last Saturday, his friend Bill was visiting Ted's house and noticed the guitar in his basement (it had not been played for years). Bill could not believe his luck; he had found a classic Telecaster that was in "mint" condition.

Bill offered to purchase the guitar from his friend. Ted agreed and wrote up the contract: "I offer to sell you my vintage Fender Telecaster. You must accept this offer in writing, and I must receive payment in cash before 5 p.m. on Wednesday." Bill signed accept the offer and left. He returned to Ted's house on Tuesday evening with about $500 in cash. Ted answered the door and told him that unfortunately, the guitar was "no longer available" as he had had decided to trade it in on a new set of drums at the local music shop. Bill was very upset.

"We had a contract" Bill shouted. Was he right?