Principle: Acceptance should be made while the offer is still subsisting. The offer or is free to retract his offer at anytime before his offer gets accepted by the offeree. Once the offer is withdrawn or a lapsed, it is not open to be accepted so as to give rise to a contract. Similarly, if a time is prescribed within which the offer is to be accepted, then the offer must be accepted within the prescribed time. And if no time is prescribed, then the acceptance must be made within a reasonable time. 'What is a reasonable time', is a question of fact which is to be determined by taking into account all the relevant facts and surrounding circumstances.
Facts: 'X' makes an offer to 'Y' to sell his equipment for Rs.1000.00. No time is specified for the acceptance. 'Y' sends his reply two years after receiving the offer.
Which of the following derivations is correct?