On 1st October X Ltd wrote to Y Ltd offering to sell a machine at...

Vendor: CIMA
Product: BA4
Update on: Dec 15, 2025
Questions: 661

CIMA BA4 Question Answer

On 1st October X Ltd wrote to Y Ltd offering to sell a machine at a price of £5,000. The letter stated that Y Ltd must give X Ltd “notice in writing” of its acceptance of the offer by 8th October. Y Ltd posted its acceptance on 5th October and this reached X Ltd on 7th October. In the meantime X Ltd sent a letter to Y Ltd on 4th October revoking its offer, and this reached Y Ltd on 8th October.

Which of the following is correct?

There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 4th October when the revocation was sent to Y Ltd.

There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 8th October when the revocation was received by Y Ltd.

X Ltd and Y Ltd contracted on 5th October.

X Ltd and Y Ltd contracted on 7th October.