Fresh Dairy, Inc., is the offeror and Gelato Ice Cream Company is the offeree under a unilateral sales contract in which Hector's Helado Corporation is also interested. Gelato is not notified of Fresh Dairy's performance within a reasonable time. Gelato
A) may treat the offer as having lapsed.
B) must assume that Fresh Dairy has started to perform.
C) must contact Fresh Dairy.
D) must notify Hector's.

Question

Fresh Dairy, Inc., is the offeror and Gelato Ice Cream Company is the offeree under a unilateral sales contract in which Hector's Helado Corporation is also interested. Gelato is not notified of Fresh Dairy's performance within a reasonable time. Gelato
A) ​may treat the offer as having lapsed.
B) ​must assume that Fresh Dairy has started to perform.
C) ​must contact Fresh Dairy.
D) must notify Hector's.​

Quizplus · Accepted Answer

According to the case, Gelato Ice Cream Company has not been notified of Fresh Dairy's performance within a reasonable time. Therefore, Gelato may treat the offer as having lapsed, as they have no knowledge of Fresh Dairy's intention to perform.