Which statement is true about the bike sale scenario?

• A. The owner must sell the bike to his assistant for $75.
• B. The owner must sell to the manager for $100.
• C. The owner can cancel because there are multiple offers.
• D. The owner must accept the first offer regardless of amount.

Answer: (A)

This question tests how a seller’s obligations are shaped by a pre-existing contract or option. If there is a valid agreement giving the assistant the right to buy the bike for a fixed price of 75, the owner must honor that agreement and sell to the assistant at that price. An enforceable contract or right of first refusal overrides the seller’s freedom to pick among offers or to cancel just because other offers exist, or to be obligated to accept the first offer regardless of amount. So, the owner is bound to complete the sale to the assistant for 75 under the contract, which is why that statement is the correct one. The other options would only be true if no binding agreement governed the sale.