All Sugar Ltd Is a Producer of Cane Sugar

Multiple Choice

All Sugar Ltd is a producer of cane sugar. Blucose Ltd operates a glucose processing factory. For the past four years, Blucose has regularly ordered between 150 and 200 tons of sugar from All Sugar. Every year the contract is renegotiated. On 30 November, All Sugar sends out an offer to Blucose: 'We wish to offer you 200 tons of sugar at same price as last year'. On 1 December, Blucose sends out an offer: 'We wish to purchase 200 tons of sugar at same price as last year'. Both parties receive the respective offers on 4 December. On that day, there is a crash in the sugar market. Can Blucose enforce a contract for 200 tons of sugar at last year's price with All Sugar?

A) Yes, a contract was concluded by offer and acceptance on 4 December.
B) Yes, according to the postal rule, an offer is accepted when acceptance is posted. This was done by Blucose on 1 December, a day after All Sugar made an offer.
C) No, there was no acceptance by either party.
D) No, the crash is the sugar market is a frustrating event