Graham wanted to be supplied with Yorkshire stone by Steve. He entered into an agreement with Steve to be supplied 20 tones of Yorkshire stone. 2
On the other hand, the contract had fulfilled an element of a valid contract of an offer and acceptance. In order for a contract to be an enforceable contract, certain basic requirements must be present. There must be an agreement based upon genuine consent of the parties supported by a consideration and made for a lawful object between competent parties. Graham requested Steve to supply him with 20 tonnes of Yorkshire stone which he accepted to deliver to him by 12th January. Graham accepted Steve's delivery through a fax which he wrote on 5th December.
In order for a contract to be binding, the acceptance must be communicated and mere mental intention to accept it is not sufficient. Acceptance once made cannot be revoked. An offer may be revoked by an express notice before it is accepted. But acceptance can not be revoked in under any circumstance. The moment a contract is concluded, it does not matter whether the acceptance is by word of mouth or in writing or even sent by post.
The acceptance is considered complete immediately the letter of acceptance is posted, even if it is lost or destroyed in the post so that it never arrived. As long as the offeree can prove that he posted the letter of acceptance, the court will enforce the contract.
However, there is an exception to the communication of acceptance. That the rule that the acceptance made by post, telegram or cable takes effect from the moment of posting is an exception to the general rule, that a contract is complete only when acceptance is actually communicated to the offeror. But a contract made by telephone is complete when the acceptance is heard by the offeror. For this case, the acceptance to purchase Yorkshire stones from Steve took effect when the fax arrived at Steve's premises. There is no way Graham can revoke this contract since it is already binding.
The contract between Graham and Steve had fulfilled another element of a valid contract that there must be a consideration. Though consideration is required in every single contract, it needs to be adequate as long as it has some economic value. Even an act or omission of small value can be consideration, but a mere sentimental motive for making the promise will not make it binding. For this case, in the contract between Graham and Steve, there was already an executory consideration to supply Yorkshire stones by Steve to Graham on January 12th. 4
Graham should not revoke the contract since it became binding immediately he sent an acceptance letter to Steve through the fax. For this case, he should fulfil his obligation otherwise he might be required to pay damage for breach of contract. It is immaterial that he got another supplier who could supply him Yorkshire sand by 3rd of January at a cheaper