Franz bought a round-trip ticket to Germany to visit relatives.Unfortunately,a week before flight time,he broke his leg.He offered his co-worker,Joe,the ticket for 80 percent of the full price,offer to remain open until 10:00 p.m.on December 15.Indicate to Joe which of the following is true with regard to the law of offer and acceptance.
A) If Franz sells to someone else, it is too late for Joe to accept the original offer.
B) Franz could revoke the offer anytime before acceptance, even before 10:00 p.m. on December 15.
C) To create a contract, an offer must be in writing.
D) A letter of acceptance is always effective when it is dropped in the mailbox.
E) If Joe makes a counter-offer of 50 percent of the full price, and Franz rejects the counter-offer, Joe can still accept the original offer.

Question

Quizplus · Accepted Answer

According to the law of offer and acceptance, an offer can be revoked by the offeror before acceptance. Therefore, Franz can revoke the offer anytime before Joe accepts it, even before the deadline of 10:00 p.m. on December 15. Option A is incorrect because Joe can only accept the original offer before Franz sells the ticket to someone else. Option C is incorrect because a written offer is not always necessary to create a contract. Option D is incorrect because the acceptance is effective when it is communicated to the offeror, not just when it is dropped in the mailbox. Option E is incorrect because a counter-offer terminates the original offer, and if Franz rejects the counter-offer, Joe cannot go back and accept the original offer.

Franz Bought a Round-Trip Ticket to Germany to Visit Relatives