Question

On October 25, 1989, Mina Loy sent a letter to Carl Van Vechten which said, "I hereby offer to hire you to paint my house for $4,000 during Thanksgiving break. Your acceptance of this offer must be by first-class mail and must reach me no later than noon on November 1, 1989." Vechten was so excited when he received her letter that he telephoned Loy on October 26 and said "I accept." Which of the following is a true statement?

	A.	There is a valid acceptance and a binding contract because the telephone call was a reasonable means of acceptance.
	B.	There is no acceptance and no contract in this situation as it is clearly mentioned by the offeror that the acceptance must be by mail.
	C.	There is a valid acceptance and a binding contract because the telephone call was an authorized means of acceptance.
	D.	There is a valid acceptance and a binding contract because the telephone call was a faster means of acceptance than the mail.

Answer 1

The correct answer is -

Option (B) There is no acceptance and no contract in this situation as it is clearly mentioned by the offeror that the acceptance must be by mail.

Explanation -

This is a bilateral contract and the very term of the acceptance "must be by first-class mail."

Therefore, the acceptance will be valid only if it's through mail and a telephonic acceptance is void in this scenario since there is "no contract."