Has a contract been formed?

Jenny has received a written offer from a supplier. She emails them to clarify if they can do next day delivery. The supplier does not reply. The next day Jenny makes the payment.

Has a contract been formed?
A . yes- the supplier made an offer and Jenny accepted it by making a payment
B. yes- a counter offer has been made
C. no- the clarification constitutes a conditional acceptance
D. no- a contract has not been signed

View Answer

Answer: A

Explanation:

Yes- the supplier made an offer and Jenny accepted it by making a payment is the correct answer. The other three options are incorrect: ‘yes- a counter offer has been made’ = there is no counter-offer made in this example – a clarification is not a counter-offer / ‘no- the clarification constitutes a conditional acceptance’ = clarifications are not conditional acceptance / ‘no- a contract has not been signed’ = there doesn’t need to be a signed document- acceptance can be through performance. Issuing the payment would be considered acceptance via performance. See p 2-12 for more information on conditional acceptance, counter offers and acceptance of offers.