The correct answer is: (D) No, because the defendant's lawyer revoked the offer before the plaintiff's lawyer accepted it.
The defendant's lawyer indicated the offer was "good for 24 hours," but the general rule is that an offeror may revoke the offer at any time for any reason as long as the revocation occurs prior to acceptance and is effectively communicated. Because the defendant's lawyer told plaintiff's lawyer personally that the offer was revoked, before the release was presented, both of those conditions are met here. Thus, the plaintiff's acceptance came too late, after revocation.
(A) Incorrect. Yes, because the plaintiff's lawyer accepted the offer within the 24-hour time limit.
This answer is incorrect because the acceptance did not come before the offer was revoked. The offer originally was to be open for 24 hours, but the defendant's lawyer had the right to revoke the offer at any time for any reason, as long as it was prior to the plaintiff's acceptance and the revocation was effectively communicated. In this case, the defendant's lawyer effectively communicated the revocation before acceptance when he called the plaintiff's lawyer before the plaintiff's lawyer produced the release.
(B) Incorrect. Yes, because the plaintiff's lawyer accepted the offer within a reasonable time.
This answer is incorrect because the offer had been revoked by the time the plaintiff's lawyer accepted it. It is generally true that an offer may be accepted within a reasonable time, if there is no time stated in the offer or no other special circumstances. It also may be true that 13 hours is a reasonable time to accept this offer. However, the offer in this case had been effectively revoked before acceptance, when the defendant's lawyer called the plaintiff's lawyer to communicate the revocation. Therefore, it is irrelevant that the offer was accepted within what may be perceived as a reasonable time.
(C) Incorrect. No, because the plaintiff's lawyer did not accept the offer before the end of the face-to-face conversation with the defendant's lawyer.
This answer is incorrect because it applies the wrong rule to the situation. Generally, it is true that an offer made face to face is ordinarily open only until the end of the conversation. However, this offer had a particular time period within which the plaintiff could accept. Therefore, if the plaintiff's lawyer accepted within that stated time frame, there would have been a contract. In this case, however, the contract is not formed because the offer was revoked hours later before acceptance had been made, not because it expired at the end of the face-to-face conversation.
