On Monday Delia offers to sell Okafor a used industrial printing press for £45,000. Okafor pays Delia £500, and in return Delia promises in writing to keep the offer open until Friday. On Wednesday Delia tells Okafor she is withdrawing the offer because she has received a higher bid. On Thursday Okafor accepts the offer in writing. What is the legal position?

Correct answer: C) There is a contract, because Okafor gave consideration for Delia's promise to keep the offer open, creating a binding option, so her purported withdrawal was ineffective

Explanation

The general rule is that an offer may be revoked at any time before acceptance, even if the offeror promised to keep it open, because a bare promise is not supported by consideration (Routledge v Grant, Dickinson v Dodds). The position is different where the offeree gives consideration for the promise. Okafor's £500 bought an option, which is itself a binding contract, so Delia could not withdraw the offer during the option period. Okafor's acceptance before Friday is effective, and if Delia refuses to deliver the press she is in breach. No particular method of acceptance was required.