On December 2, AA Crystal, a manufacturer of crystal products, mailed to Jenny B

Question

On December 2, AA Crystal, a manufacturer of crystal products, mailed to Jenny Baker a letter stating that AA would sell to Baker 50 crystal “A” candlestick holders at $100 per and that “the offer would remain open for twenty (20) days.” On December 5, following a significant and unexpected increase in the price of crystal wares, AA decided to revoke its offer to Baker. Baker was notified of the revocation on December 8. On December 19, Baker mailed a letter to AA accepting the offer. AA received the letter of acceptance on December 24. Is there a valid contract? Please explain.

Explanation / Answer

In the given question there is not a valid contract. This is because the offer was withdrawn by the AA Crystal and Jenny Baker was informed for same. Contract will be valid when both the parties have agreed upon the same conditions with duly signed with the both parties. The party who has given the offer may withdraw his offer before acceptance. But yes it cannot withdraw if the offer is accepted. But AA Crystal has withdrawn before acceptance and informed the same.

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