REVISION QUESTIONS
OFFER & ACCEPTANCE
Sample Problem Question 1
Arnold, an electrician, develops novel lampshades. Earlier this
year, he developed a new lampshade suitable for use with
compact fluorescent lights. On 1st May, he emailed Bob and
Charlie, both wholesalers to whom he had previously sold
lampshades. In his email, he asked each of them whether they
would be interested in becoming the sole distributor of his new
lampshade.
On 5th May, Bob and Charlie both emailed Arnold independently,
each stating that they were interested in becoming sole the
distributor for the lampshade and requested further information.
On 7th May Arnold emailed Bob: “I offer you the post of sole
distributor of the lampshade at a basic 10% commission. If I
hear nothing from you by 14th May, I will assume that this is
acceptable to you”. Bob immediately posted a first class letter
to Arnold in which he accepted Arnold’s offer. The letter did not
arrive until 16th May.
In the meantime, Charlie, having heard nothing further from
Arnold, posted a letter to Arnold in which he offered to become
Arnold’s sole distributor for a 20% commission. Arnold received
Charlie’s letter on 15th May. Arnold immediately telephoned Bob
and told him that the post of sole distributor was no longer
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