Saturday, October 06, 2007

Contract Act_Practical Problems_5

M agreed on Monday to sell his property to N by a written agreement which stated "that this offer to be left open until Saturday 10 a.m." In the meantime on Wednesday, M enters into a contract to sell the property to 0. N, who was sitting in the next room, hears about the deal between M and 0. On Friday, N accepts the offer and delivers to M the letter of acceptance. Is N's acceptance valid? Give reasons.

N's acceptance is valid, the acceptance being made before revocation of the offer by M. The overhearing by N does not amount to a valid revocation. The situation would have been different if, before acceptance by N, M had formally communicated his revocation to him.

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