CIMA BA4 · Chapter 10 · Question 4 of 10
On 1 March, Ann posts a letter accepting Ben's offer. On 2 March, Ben posts a letter revoking the offer. Ann's letter arrives on 3 March and Ben's arrives on 4 March. Under English law, assuming the postal rule applies, is there a contract?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Yes, a contract was formed on 1 March when Ann posted her acceptance
Explanation
Under the postal rule, acceptance is complete when a properly addressed and stamped letter is posted (Adams v Lindsell), so a contract arose on 1 March. Revocation is only effective when actually received by the offeree (Byrne v Van Tienhoven), and Ben's revocation arrived after the contract was formed, so it was too late.
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