Busy Corp. sent a letter on January 12 th to Slow Co. offering to sell its main office building for $250,000, stating that its offer was open only until January 20 th , and it must have a response from Slow Co. by then. Slow Co. received the letter on January 14 th and prepared a letter of acceptance on that day but had not posted it. The next morning Busy Corp. called and said that it had changed its mind and was withdrawing its offer.A) There was a contract as soon as Slow Co. wrote the letter of acceptance and the revocation is too late.B) Since the revocation was made by telephone and the offer was made by letter, the revocation is not effective.C) The revocation was effective because it was communicated to Slow Co. before the acceptance was sent.D) The revocation was effective because it was communicated to Slow Co. before the acceptance was received by Busy Corp.E) All of the above are false.

Question

Busy Corp. sent a letter on January 12 th  to Slow Co. offering to sell its main office building for $250,000, stating that its offer was open only until January 20 th , and it must have a response from Slow Co. by then. Slow Co. received the letter on January 14 th  and prepared a letter of acceptance on that day but had not posted it. The next morning Busy Corp. called and said that it had changed its mind and was withdrawing its offer.A)  There was a contract as soon as Slow Co. wrote the letter of acceptance and the revocation is too late.B)  Since the revocation was made by telephone and the offer was made by letter, the revocation is not effective.C)  The revocation was effective because it was communicated to Slow Co. before the acceptance was sent.D)  The revocation was effective because it was communicated to Slow Co. before the acceptance was received by Busy Corp.E)  All of the above are false.

John Vincent Quaicoe · Accepted Answer

Final Answer : C, Explanation :  DThe revocation of an offer is effective when it is communicated to the offeree before they dispatch their acceptance. In this scenario, Busy Corp. effectively revoked its offer by informing Slow Co. before Slow Co. had sent its acceptance letter. The method of communication (telephone versus letter) does not invalidate the revocation.

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