[faalguni]

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.

[Fr_Chuck]

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

[faalguni]

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

[AK lawyer]

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.

[Fr_Chuck]

Yes unless the offer was not received, so not valid

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

[faalguni]

Thank You

[AK lawyer]

... 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.