On May 1, 2002, Marek received a telegram from Sergei offering to support him in his new construction project. On May 5, 2002, at 9:00 a.m., Sergei sends Marek a telegram attempting to revoke the offer. At 11:00 a.m. on the same day, Marek mails Sergei a letter attempting to accept the offer. At 11:30 a.m., Marek receives Sergei's revocation. Assume Marek and Sergei are both construction contractors and the custom in the construction business is to offer by telegram and accept by mail. Which of the following statements holds true in this situation?
A) Sergei's revocation can make changes to the contract, though it reaches Marek after he sends the acceptance mail.
B) Marek's acceptance would be effective only when Sergei reads the acceptance, which would then create the contract.
C) The parties would have a contract because Marek used the means of communication impliedly authorized by trade usage.
D) The parties would not have a contract as Marek used a nonauthorized means of communicating his acceptance.

Question

Quizplus · Accepted Answer

In the given scenario, it is assumed that Marek and Sergei are both construction contractors and the custom in the construction business is to offer by telegram and accept by mail. In this instance, the parties would have a contract because Marek used the means of communication impliedly authorized by trade usage. His acceptance would be effective when mailed, creating a contract before Sergei's revocation was received.

On May 1, 2002, Marek Received a Telegram from Sergei