Giorgio visited the showroom of Hot Ovens Pty
Ltd to purchase a new pizza oven for his restaurant. He finds a suitable heavy
duty commercial-grade-gas-fired pizza oven on display. The manager tells
Giorgio that the oven is on special and is for sale at $25,000. Giorgio replies
that he needs some time to think about it, and the manager says he will keep
the offer open for a week.
After two days, the manager contacts Giorgio and
tells him that they are revoking the offer as they have sold the oven to
someone else.
Which of the following is CORRECT ?

Question

Giorgio visited the showroom of Hot Ovens Pty
Ltd to purchase a new pizza oven for his restaurant. He finds a suitable heavy
duty commercial-grade-gas-fired pizza oven on display. The manager tells
Giorgio that the oven is on special and is for sale at $25,000. Giorgio replies
that he needs some time to think about it, and the manager says he will keep
the offer open for a week. 
 After two days, the manager contacts Giorgio and
tells him that they are revoking the offer as they have sold the oven to
someone else. 
 Which of the following is  CORRECT ?

Answer

Giorgio can sue for breach: the promise to keep
the offer open for a specific period of time is an option contract so Giorgio
is still entitled to accept the offer.

Answer

Giorgio can sue for breach: the promise to keep
the offer open is an option contract that can only be revoked by the buyer.

Answer

Giorgio cannot sue for breach: the promise to keep the
offer open is not binding because Giorgio has not provided consideration.

Answer

Giorgio cannot sue for breach: a promise to keep
an offer open for a specific period of time applies only to the sale or lease
of an interest in land.

Crowdly

Giorgio visited the showroom of Hot Ovens Pty Ltd to purchase a new pizza oven f...

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