1. Yes, Alice is obligated to pay Bill at the original offer price of $100 as it is displayed in her shop as OBO $100.This is a unilateral contract where Alice puts that on a sale signboard.
2. Yes, Alice is obligated to sale Bill the Beanie Babies for his accepted Buy It Now price of $500 as it is available online and according to the e-contract, Alice is liable to sell the Beanie Babies at $500 only. Again, if Bill does not want to buy the Bean Babies at $500, then he can cancel the order but if it is cash on delivery, then he may or may not buy with the phone call informing Alice is sufficient.
3. Bill is bound by contract law as he has accepted the Buy it Now Price online.there was an offer, he accepted online through the merchant Ebay, so it has a legal consideration which makes it a contract. Assuming Bill does not want the Beanie Babies and while submitting a $400 bid, he enters into a $40,000 bid, then he is liable to pay $40,000 as it is a mistake done by Bill.
4. Bill may raise defenses for purchasing $40,000 should not be for Bean babies are::
a. The product is not worth the price, so the contract is void.
b. The initial offer at the shop was $100, so $40,000 is a mistake, instead of paying such a huge amount he can compensate for Alice losses.
c. He was drunk for which he was not in a sound mind to take a decision, so a contract cannot be made in a drunken state.
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