A faxed to B on 5th July: Would you like to buy my luxury car? I have in my mind a price of Rs.6 lakhs and prompt delivery is assured. Expecting to hear from you.
B wrote back immediately: I accept your terms: I expect the delivery by the end of the month so that I may use it during my August vacation


B posted the letter immediately and in normal course, the letter would have reached A latest by 10th July. But the letter somehow was delayed and reached a only on 17th July. Meanwhile, on 15th July, A thinking that B was not interested, sold car to C. By 20th July, B approached A with money. When A express his helplessness, filed a suit against A.

Thank you for posting your home work,

Of course the law varies as to where this is, American law, if so actually what state will make a difference.

Most likely this is home work. So you tell us what you think and we will give you opinions of the answer

Well, the state here in question is India where we still follow British Law.
I have 2 possibilities in mind
1. Since the offeror A has not mentioned the mode of acceptance, postal law can not be applied and hence its not a valid contract since the post was never actually received by A

2. the postal address was known to B, hence it was an implied mode of acceptance and hence postal law can be applied and hence it is a valid contract and the case is breach of contract

3. A chose the appropriate means of communication: fax. Therefor B should have used fax transmission to communicate acceptance. Since B did not within a reasonable period, B looses.

Yes unless the offer was not received, so not valid

Plus under common law there was no payment made to bind a contract

Thank You

... Plus under common law there was no payment made to bind a contract

Payment is not necessary under the common law. Consideration (i.e.: a promise to pay) is all that's necessary; and acceptance can (but in this case doesn't) constitute consideration.