FE-1 Law Of Contract Practice Questions - FE-1 Final Examination - First Part Law Of Contract Exam

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A offers by letter to sell goods to B and asks for a reply. B posts a letter of acceptance which is correctly addressed and stamped, but it is delayed and never arrives. The post was a reasonable means of reply. When, if at all, is the contract formed?

No contract is formed because A never received the acceptance. A contract is formed only when A acknowledges B's reply. A contract is formed when B posts the letter of acceptance. A contract is formed when the letter would ordinarily have arrived.

Correct Answer:

A contract is formed when B posts the letter of acceptance.

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