Question

On May 1, A makes a written offer to B for the sale of A's car. On May 2, A mails B a letter revoking the offer. On May 3, A telephones B to tell him that he is revoking the offer. On May 4, B learns that A has sold the car to C. On May 5, A's letter finally gets to B. On what day did A's offer terminate? Why?

Answer 1

Answer:

On what day did A's offer terminate?

May 3

Why?

In order for a written offer to be terminated, the offeror must revoke the offer, the offeree must make a counteroffer, or the valid time for the offer must expire. In this case, A is the offeror and B is the offeree. A can revoke his/her offer as long as it is done before B accepted it. In order for the revocation to be valid, B must be notified about it.

In this case, A called B on May 3 to notify him/her that the offer was being revoked. Legally, that would be the day when the offer was terminated. The revocation letter is not important here because it arrived after A had called B.