Hypothetical Question with Sample Answer. Chernek, the sole owner of a small business, has a large piece of used farm equipment for sale. He offers to sell the equipment to Bollow for $10,000. Discuss the legal effects of the following events on the offer:
1 Chernek dies prior to Bollow’s acceptance, and at the time she accepts, Bollow is unaware of Chernek’s death.
2 The night before Bollow accepts, a fire destroys the equipment.
3 Bollow pays $100 for a thirty-day option to purchase the equipment. During this period, Chernek dies, and Bollow accepts the offer, knowing of Chernek’s death.
4 Bollow pays $100 for a thirty-day option to purchase the equipment. During this period, Bollow dies, and Bollow’s estate accepts Chernek’s offer within the stipulated time period.