First Principles of Business Law
Quiz: Making a contract 

Question 3

 

 

 

A says: “I am willing to sell this painting to you for $5000.  Let me know if you want it before 5:00 pm today.  B telephones A at 6:00 pm and says: “I have decided to accept your offer and buy the painting fo0r $5000.  A says: “No, it is too late for you to accept.”   In the light of these facts, which one of the following answers is the most accurate? 

(a)  B has phoned A to accept the offer within a reasonable time of the deadline set by A.  In these circumstances, the acceptance is valid and agreement is reached for the sale of the painting.

(b)  An offer must remain open for a reasonable time, and a deadline of 5:00 pm on the same day that the offer is made by A is not reasonable.  B’s acceptance at 6:00 pm that same day is therefore valid and agreement is reached for the sale of the painting.

(c)   An offer can be left open for a specified time and, in this case, A has indicated that the offer only remains in existence until 5:00 pm that same day.  B’s attempt to accept the offer at 6:00 pm is too late to result in agreement.

 

 

 

 

 

 

 

 

 

  

 

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