Jon was developing a computer program for use by owners of track clubs to aid them in keeping records of the members, their runs, times, injuries, etc. Eager to finish the program, Jon, in Edmonton, called his friend Sam, in Calgary, and offered him $4000 to help: five hours working per day, for five days week, for five weeks. Sam said that he would have to think about it. Jon told Sam that he was eager to get going, but that he would hold the offer open until Friday, February 6, at noon. Which of the following is true? (Read each separately.)
A) If Sam accepts by phone within the time specified in the offer, the place of contract would be Calgary.
B) If Jon goes ahead and hires Betsy from Edmonton at noon on February 3, it would be too late for Sam to accept.
C) If Jon revokes his offer before Friday noon, Sam could sue him for breach of contract because he promised to hold it open.
D) If the court held that acceptance by mail was reasonable in the circumstances, if Sam accepts by mail the place of contract is Edmonton.
E) If Sam wants to ensure the promise to keep the offer open until noon, February 6, he should give Jon some consideration (that is, allow him to purchase an option).

Question

Quizplus · Accepted Answer

DE: For an offer to be held open for a specific period, consideration must be given for the option. This means Sam would need to provide something of value to Jon in exchange for Jon's promise to keep the offer open until a specific time.D: If the court deems mail as a reasonable method of acceptance given the circumstances, then the contract is formed at the place where the acceptance is dispatched. In this case, if Sam sends his acceptance by mail from Edmonton, the place of contract would be Edmonton.

Jon Was Developing a Computer Program for Use by Owners