Todd offered in writing on Monday to sell his desk to Mike for $150.Todd's offer stated that unless Mike rejected Todd's offer by Thursday,it would be considered accepted.Mike did not reply until Saturday,when he rejected the offer and refused to buy the desk.Todd insists that Mike is bound to purchase the desk,since he did not reject the offer by Thursday.Discuss the validity of the contract and the legal obligation of Mike.

An offeror cannot bind an offeree just by declaring that the offeree's silence will signal an acceptance.Silence is not generally acceptance,unless both parties previously agree that silence on the part of the offeree will be regarded as an acceptance.In this case,only an offer presented by Todd exists.Since,Mike has not replied in acceptance,no contract exists.And because Mike did not agree to regard silence as acceptance,he is not legally bound to accept Todd's offer.