On December Blake Corp. telephoned Reach Consultants, Inc., and offered to hire Reach to design a security system for Blakes research department. The work will require years to complete. Blake offered to pay a fee of $ but stated that the offer must be accepted in writing, and the acceptance must be received by Blake no later than December
On December Reach faxed a written acceptance to Blake. Blakes offices were closed on December and Reachs fax was not seen until December
Reachs acceptance contained the following language:
We accept your $ offer. Weaver has been assigned $ of the fee as payment for sums owed Weaver by Reach. Payment of this amount should be made directly to Weaver.
On December Blake sent a signed memo to Reach rejecting Reachs December fax but offering to hire Reach for a $ fee. Reach telephoned Blake on December and orally accepted Blakes December offer.
Items through relate to whether a contractual relationship exists between Blake and Reach. Select from the option list provided the best reason each statement is correct or incorrect. Each reason may be used once, more than once, or not at all.
Statement Choices
Blakes December offer had to be in writing to be a legitimate offer.
Reachs December fax was an improper method of acceptance.
Reachs December fax was effective when sent.
Reachs acceptance was invalid because it was received after December
Blakes receipt of Reachs acceptance by fax created a voidable contract.
Reachs December fax was a counteroffer.