An offer lapses if acceptance is not communicated within the time prescribed in the offer, or if no time is prescribed, within a reasonable time. [sec. 6 (2)]. What is a reasonable time is a question of fact depending upon the circumstances of each case. For example, an offer made by telegram suggests that a reply is required urgently and if the offeree delays the communication of his acceptance even by a day or two, the offer will be considered to have lapsed.
In Ramsgate Victoria Hotel Co. vs. Montefiore. An application for allotment of shares was made on 8 June. The applicant was informed on the 23 November that shares were allotted to him. He refused to accept them. It was held that his offer had lapsed by reason of the delay of the company in notifying their acceptance, and that he was not bound to accept the shares.