Jed, who lives on Cape Breton Island, needed money for a trip to France. He decided to sell his electric guitar. On Monday, October 29, he called the owner of a music store in Halifax and offered to sell his Fender Stratocaster guitar for $400, the offer to be open until Friday at noon, November 2. Jed told the store owner to send a letter of acceptance since Jed would be away for a few days. The store owner examined his inventory and mailed a letter of acceptance on Thursday, November 1. When Jed returned home on Saturday, November 3, the letter had not yet arrived, so that afternoon he sold the guitar to a music teacher in his town. The store owner in Halifax sued for breach of contract. Which of the following is true?
◦ The offer lapsed before the store owner accepted.
◦ The letter of acceptance was effective when it was received, and by then Jed had sold the guitar, so there was no contract.
◦ The acceptance was effective before the offer lapsed, so there was a contract between Jed and the store owner.
◦ Sending a letter by mail was not a reasonable method of acceptance.
◦ The offer was revoked before the store owner accepted.
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