legal question about contracts?

Question

Marge makes a written offer to Homer to sell her car for $10,000. In the offer Marge states “this offer will remain open for acceptance for 5 days”. Two days later Marge contacts Homer and tells him she has changed her mind and is withdrawing the offer.
would the contract count if if Homer had paid Marge $100 to keep the offer open for the 5 days?

Answer 1

If Homer paid Marge -- and if Marge accepted -- the $100, that forms an option contract.

That option contract is a separate agreement, which requires Marge to keep the offer on the table for the duration. Failure to do so is breach of the option contract.

However, without the separate payment for the separate option contract, normal contract rules apply. And unless Marge is a merchant and under UCC rules, there is no reason she cannot withdaw her offer before acceptance.

Answer 2

Yes, while accepting $100 to keep the offer open for the 5 days, Marge has agreed and accepted the counter offer of Homer. Marge shall perform his/her part of contract, if Homer paid remaining amount within the specified 5 days.

Answer 3

Not entirely. If Homer had paid the $100, it is called an Option Contract. Marge must then keep the offer on the table for 5 days. However, because he did not pay for the 5 day option, Marge may revoke at ANY TIME before Homer accepts.