Business Finance Homework Help

Sarath, a sole proprietor displays a “Diana Model Hand Bag” in his shop window, with the price marked on it as Kshs.25,000/-. Priyanka visited the shop and told Sarath that she was willing to buy it for Ksh s.20, 000/-. Sarath replied that he could give it only for Kshs.22, 000/-, but Priyanka insisted that she was willing to pay only Ksh s.20, 000/-and left the shop. However, Priyanka realized that it was worth Ksh s.22, 000/-and returned to the shop to buy the hand bag for KShs.22, 000/-. Sarath refused to sell it. In the meantime, Seetha visited the shop and expressed her willingness to purchase it for the price marked on it. Sarath refused to sell the handbag to both Priyanka and Seetha. Advise Sarath whether there is a contractual obligation binding him with Priyanka and Seetha on this incident. (450 words)