ExpertACCA · Question 46 · Corporate and Business Law
SCENARIO: Quantum Dynamics Ltd (QDL) is a tech startup developing AI cooling systems. On 1 May, QDL wrote to ServerTech Inc offering to buy 50 specialized servers for £100,000, stating 'Please reply by 10 May'. On 5 May, ServerTech posted a letter accepting the offer. On 6 May, QDL found a cheaper supplier and emailed ServerTech revoking the offer. ServerTech's letter of acceptance arrived on 8 May.
Based on the scenario, what is the legal status of QDL's email revocation on 6 May?
SCENARIO: Quantum Dynamics Ltd (QDL) is a tech startup developing AI cooling systems. On 1 May, QDL wrote to ServerTech Inc offering to buy 50 specialized servers for £100,000, stating 'Please reply by 10 May'. On 5 May, ServerTech posted a letter accepting the offer. On 6 May, QDL found a cheaper supplier and emailed ServerTech revoking the offer. ServerTech's letter of acceptance arrived on 8 May.
Based on the scenario, what is the legal status of QDL's email revocation on 6 May?
Answer options:
It is valid because revocation is effective as soon as it is sent.
It is valid because the acceptance letter had not yet been received.
It is invalid because acceptance had already taken place on 5 May.
It is invalid because QDL promised to keep the offer open until 10 May.
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