In: Economics
Let’s just sort the information first to make an ease for us.
Day 1: A florist offers to completely decorate a wedding venue for $1,000.
Day 2: The florist realizes he’s not going to make much, and he sends a revocation of the offer in the mail to the customer.
Day 3: The customer puts a letter in the mailbox accepting the offer
Day 4: The customer receives the florist’s revocation letter.
Day 5: The florist receives the acceptance.
The answer is (a) No, because a revocation of an offer is valid when the customer mailed the acceptance.
Now, it there was no contract that was formed between the two parties. Because the florist himself revocated the deal on the second day i.e, before the customer accepted his offer. The communication time gap that is present is not going to affect the whole deal. So it’s just like the same if had it been the normal case (with no time gap).
About the other options, ‘’the customer received the revocation before the florist received the acceptance’’ is not valid because the receipt of acceptance by florist doesn’t come into the picture. It was already accepted by the florist in the first place, so it doesn’t matter if he has received the customer’s acceptance before the customer received the revocation or after it.
‘’The florist made a mistake as to the amount he would make from the transaction, so a valid contract can’t be formed’’ is not valid because the billed amount is the second thing here that should be considered. It is florist’s personal choice and his wrong prediction of values can’t really stop it to make a valid contract.
Lastly, the acceptance was not valid, as already explained.