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Principle: An offer to enter into a contract can be revoked at any time before its acceptance is communicated, but not afterwards. Facts: A by letter offers to sell his bike to B. B posts an acceptance. Before B's acceptance reaches A, A telephones B and says, 'I have changed my mind.' Which is MOST accurate?

AThe contract is voidable at A's option
BThe contract is invalid because it lacks writing
CThe contract was formed when B posted the acceptance; A's revocation came too late
DNo contract because A revoked before reading the acceptance
Answer & Solution
Correct answer: C. The contract was formed when B posted the acceptance; A's revocation came too late
Sections 4-5 Indian Contract Act: acceptance is complete as against the proposer when the letter is posted (out of the acceptor's power). Once posted, the proposer cannot revoke. A's phone call comes too late.
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