Hello Skylight,
I will assume you are describing a no-limit game. The blinds are $200/$400. On the turn you said that players A and B folded. This is where the problems begin. Folding when it is your turn to act, without a bet in front of you, violates rules #43 Ethical Play and #44 Etiquette Violations (as stated by chet). The next problem is defining the $700 wager by player C as a raise. Initiating a bet is not a raise. The next problem is why would player D attempt to make a bet unless there were other players behind him, or he thought that player C checked in front of him, right?
I'm a little late with this response, but it's the first time I've seen it. It might need to be translated but, I think it is worthy of mention. My interpretation of Rule 29 is different than others. I will zero in on the part in question; Action out of turn will be binding if the action to that player has not changed. A check, call or fold is not considered action changing. This takes a little too much thought the way it is written. This might explain it better; In other words, the only action that would negate a verbal bet out of turn is a bet or a raise by the proper player. period. Example given; player A folds, player B folds (both violate rule #44) and before player C acts, Player D wagers $1400 but the correct player announces that he wants to wager $700 (which is a legal wager). The issue here is, should player D be obligated to his $1400 bet? The answer can be simple if it was an accident because player D did not know player C was in the hand and more importantly, there was no substantial action, then player D should not be held to his $1400 wager and every option should be open to Player D, fold raise or call......Remember, we must always consider the intent of the player. A caution or a warning to the player that he must wait his turn, should be enough. If the player repeats the action after being warned, then he should be held liable to any "out of turn" wager that he announced! I was confused on this ruling myself on a prior discussion. Another example player A bets, player C raises and skips player B, if the action can be corrected before another player reacts to the incorrect bet, then the action should be backed up to the proper player. If the bet out of turn is followed by another player acting (because he was misled by the wrong bettor), this is considered substantial action.
Nick C