- 1 Marks
BCL – L1 – SA – Q28 – Contract Law
Eckerly Realty’s offer expires June 30. Masse’s acceptance arrives July 1. Is there a contract?
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.
Find Related Questions by Tags, levels, etc.
