Mika posts a letter accepting Dev's written offer on Monday. Dev posts a letter withdrawing the offer on Tuesday, which arrives on Wednesday. Mika's letter arrives on Thursday. Does a contract exist?
Answer and explanation
Correct answer: B. Yes, because under the postal rule acceptance was complete when Mika posted the letter on Monday
- Step 1: Adams v Lindsell applies the postal rule where post is a reasonable method.
- Step 2: Acceptance is complete on posting, while revocation is effective only when communicated, and Dev's letter reached Mika after posting.
Answer
Yes, because under the postal rule acceptance was complete when Mika posted the letter on Monday.
Why not the others: Receipt rule applies to instantaneous methods; Dev's withdrawal took effect after the contract was made; the contract starts on posting, not receipt.
Practise more Formation, consideration and intention.
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