Question

The Great A. & P. Tea Co. rented a store from Geary. On February 25 the company wrote Geary offering to execute a lease for an additional year, commencing on May 1. At 10:30 a.m. on March 7, Geary wrote a letter containing a lease for the additional year and accepting the offer. On the same day at 1:30 p.m. the company mailed Geary a letter stating that it withdrew the offer to execute the new lease. Each party received the other's letter the following day. Was there an effective acceptance of the offer to make a lease?

Answer 1

The Great A. & P. Tea Co. sent an offer to execute a lease for an additional year which was subsequently accepted by Geary. However, subsequently the company mailed Geary a letter stating that it withdrew the offer to execute the new lease.

It is worth noting that while extending a lease agreement it is mandatory to new lease deed or an addendum to the existing lease deed. Since, the company and Geary have not executed any new lease deed or addendum, accordingly, there is no valid agreement between the parties. Accordingly, it is wrong to say that it is an effective acceptance of offer to make a lease.