- 1 Marks
BCL – L1 – SA – Q28 – Contract Law
Question
On May 1, 2005, Eckerly Realty Inc. mailed a written offer to Masse for the sale of an office building. The offer included an express term that it would expire on June 30, 2005, if the acceptance was not delivered into the hands of the offer by the expiration date. On June 30, 2005, at 8:00 a.m., Masse sent a written acceptance to Eckerly via Masse’s personal messenger. However, the messenger was not able to deliver the acceptance until July 1, 2005. On July 2, 2005, Eckerly contacted Masse, informing him that the acceptance had been delivered one day late. As a result, Eckerly refused to honour the acceptance. Which of the following is the most correct statement?
A However, if Masse would have mailed the acceptance on June 30, 2005, a contract would have been created.
B There is a contract between Eckerly and Masse. The moment that Masse gave the acceptance to the messenger; a contract was formed because acceptances are valid immediately upon dispatch.
C There is a contract between Eckerly and Masse. The fact that the acceptance arrived only one day late is of no significance.
D There is no contract between Eckerly and Masse.
Answer
D
Explanation:
For a contract to be formed, an offer must be accepted within its terms before it expires. Eckerly’s offer explicitly required acceptance to be delivered by June 30, 2005. Masse’s acceptance, sent on June 30 but delivered on July 1, was late, failing to meet the offer’s terms. The mailbox rule (acceptance effective upon dispatch) does not apply because the offer specified delivery into the offeror’s hands. Therefore, no contract was formed. Option D is correct. Option A is incorrect because mailing on June 30 would not satisfy the delivery requirement. Option B is incorrect because the mailbox rule is overridden by the offer’s terms. Option C is incorrect because the late delivery voids the acceptance.
- Tags: Acceptance, Contract Law, Mailbox Rule, Offer
- Level: Level 1
- Topic: Contract Law
- Uploader: Samuel Duah