ICANBusiness LawLaw of Contract: Formation2024

Adebayo offered to sell an industrial generator to Chidi for ₦1,500,000. In response, Chidi stated that he would purchase the generator for ₦1,200,000. Adebayo declined the lower price. Chidi subsequently wrote to Adebayo purporting to accept the original offer of ₦1,500,000. Under the Nigerian Law of Contract, what is the legal position regarding Chidi's purported acceptance?

AA valid contract is formed because Chidi eventually agreed to the original asking price before any formal revocation was communicated.
BNo contract is formed because Chidi's offer of ₦1,200,000 constituted a counter-offer which terminated the original offer.CORRECT
CA valid contract is formed, but Adebayo retains the right to revise the price to account for inflation.
DNo contract is formed because Adebayo was required under CAMA 2020 to reduce the transaction to a formal written deed.
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Why the answer is B, and why the others tempt you.
Under the Nigerian Law of Contract (following the established principle in Hyde v Wrench, as applied in Nigerian courts such as Orient Bank Nig. Plc v Bilante Enterprises Ltd), a counter-offer operates as a rejection of the original offer and terminates it completely. Once the original offer is destroyed by a counter-offer, it cannot subsequently be accepted unless the offeror expressly renews the offer.
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