Penny, whose main job is in law but who makes ceramics as a hobby, mailed Albert, a ceramics merchant, a signed letter on December 10 offering to sell her supplies because she planned to discontinue her ceramics hobby. Surprisingly, however, during the Christmas season, she started receiving a number of offers to buy her merchandise and began to give consideration to starting a side business in ceramics. She called Albert on December 18 and told him that she revoked her offer. Albert told her that it was too late because he had just put in the mail, on December 17, an acceptance to her offer. Assuming that Penny had not yet received the letter accepting her offer, which of the following would courts in most states rule?
That it was too late for Penny to revoke the contract once Albert mailed the acceptance.
That Penny could not revoke her offer because it had not been left open for a reasonable amount of time under the circumstances.
That Penny could revoke her offer because she had not received Albert’s letter.
That Penny could revoke her offer because she was revoking within one week of when she mailed the letter to Albert.
Most of the court will rule as "That it was too late for Penny to revoke the contract once Albert mailed the acceptance" because a revocation of a proposal must be made by the proposer before acceptance by the acceptor of the offer and acceptance is deemed to be made as against the proposer when it is put in course of transmission by the acceptor so as to be out of the power of the acceptor.
In the present case, Acceptance is said to be made on 17th of December when Albert mailed to penny of it and as per the law penny must have to communicate the revocation before mail of Albert i.e. before 17th of december.
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