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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?
ACCA · Question 48 · 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.
Assume a contract was formed. ServerTech later realizes they miscalculated and asks QDL for an extra £10,000 to complete the delivery. QDL agrees to pay the extra to avoid delays, but later refuses to pay the £10,000. Under the rule in Williams v Roffey Bros, is QDL bound to pay the extra £10,000?
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.
Assume a contract was formed. ServerTech later realizes they miscalculated and asks QDL for an extra £10,000 to complete the delivery. QDL agrees to pay the extra to avoid delays, but later refuses to pay the £10,000. Under the rule in Williams v Roffey Bros, is QDL bound to pay the extra £10,000?
Answer options:
No, because ServerTech was already contractually bound to deliver the servers.
Yes, if QDL obtained a practical benefit from ServerTech completing the delivery on time.
No, because the agreement for the extra £10,000 was not in writing.
Yes, because promissory estoppel prevents QDL from going back on their word.
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