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B is corrent because Blue effectively accepted Silk’s offer to sell prior to the termination of the offer. Normally, a counteroffer terminates an offer when communicated to the offeror. However, Blue’s inquiry into the selling price on July 15 did not constitute a counteroffer since it was merely a request for different terms. Thus, the offer remained open beyond July 15. Also, Blue’s knowledge of Tint’s offer to purchase the building did not serve as a revocation of Silk’s offer. Therefore, the offer to sell the building remained open until acceptance by Blue on July 29.
A is incorrect because under common law, an offer which is not supported by consideration may be revoked at any time prior to acceptance. Thus, Silk was not obligated to keep the offer open for the 30-day period.
C is incorrect because although Blue did not use the authorized means of acceptance (i.e., telegram), Silk received the acceptance prior to the lapsing of the 30-day period; thus, Blue’s acceptance was effective on the day received by Silk (July 29). Failure to use the authorized means of communication does not invalidate the acceptance; it merely delays the effectiveness of the acceptance until received by the offeror.
D is incorrect because Blue’s telegram of July 15 was merely an inquiry. It did not serve as a counteroffer to terminate the contract. Therefore, the offer to sell the building remained open until acceptance by Blue on July 29.