Principle: Acceptance should be made while the offer is still subsisting. The offeror is freeto retract his offer at any time before his offer gets accepted by the offeree. Once the offer iswithdrawn or is lapsed. it is not open to be accepted so as to give rise to a contract. Similarly. if atime is prescribed within which the offer is to be accepted, then, the offer must be acceptedwithin the prescribed time. And. if no time is prescribed, then. the acceptance must be madewithin a reasonable time. „What is a reasonable time„, is a question of fact which is to bedetermined by taking into account all the relevant facts and surrounding circumstances.Facts: „X? makes an offer to „Y? to sell his equipment for ? 1,000.00. No time is specified for theacceptance. „Y? sends his reply two years after receiving the offer. Which of the followingderivations is CORRECT?

• A. There arises a contract between „X' and „Y„ to sell/buy the equipment in question for Rsn1,000.00
• B. There does not arise any contract between „X' and „Y? to sell/buy the equipment in questionnfor Rs 1,000.00
• C. „X? is bound by his offer. and hence. cannot reject the acceptance made by „Y'
• D. There arises a promise by „Y? to buy the equipment