ACCA · Question 04 · The law of obligations
Section A
NovaTech Ltd offers to sell a batch of quantum processors to Q-Compute Plc. Q-Compute accepts the offer by posting a letter on Tuesday. On Wednesday, NovaTech sends an email revoking the offer. The email is received immediately but Q-Compute's letter of acceptance does not arrive until Thursday. What is the legal status of the contract?
Answer options:
No contract was formed because the revocation was communicated before the acceptance was received.
A binding contract was formed on Tuesday when the letter of acceptance was posted.
A binding contract was formed on Thursday when the letter was received.
No contract was formed because email is a faster method of communication than post.
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