Anderson's Business Law and the Legal Environment 22th Edition by David Twomey,Marianne Jennings

Exercise 1

Able Sofa, Inc., sent Noll a letter offering to sell Noll a custom-made sofa for $5,000. Noll immediately sent a telegram to Able purporting to accept the offer. However, the telegraph company erroneously delivered the telegram to Abel Soda, Inc. Three days later, Able mailed a letter of revocation to Noll, which was received by Noll. Able refused to sell Noll the sofa. Noll sued Able for breach of contract. Able:
a. Would have been liable under the deposited acceptance rule only if Noll had accepted by mail
b. Will avoid liability since it revoked its offer prior to receiving Noll's acceptance
c. Will be liable for breach of contract
d. Will avoid liability due to the telegraph company's error (Law, #2, 9911)