Legal Principle: An agreement becomes a contract when it is entered into between two or more people with each other’s free consent. Two or more people are said to consent when they agree to the same thing in the same sense. Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation, or mistake. Factual Situation: A agreed orally to sell his house to B for 5,000, ‘Subject to contract’. The next day C offered A 6,000 for the house and A accepted this offer and sold the house to C. Can B sue A for breach of contract? Would it make any difference to your answer if the agreement between A and B was in writing? Issue: What is the liability of A and C? Decision: