ContractsOffer_and_acceptanceHARD
On Monday afternoon a buyer signs a counter-offer from the seller, places it in a properly addressed and stamped envelope, and drops it in a U.S. Postal Service mailbox. On Tuesday morning, before the envelope is delivered, the seller telephones the buyer to retract the counter-offer. The contract is silent on when acceptance becomes effective, and no statute alters the common-law default. The envelope arrives Wednesday. The buyer claims a contract was formed Monday; the seller insists the Tuesday call killed the deal. Which common-law principle determines whether a binding contract existed before the seller's Tuesday call?
Correct Answer
C) Mailbox rule
The default common-law rule fixes acceptance at the instant of proper dispatch, making the buyer's deposit in the mailbox Monday afternoon the binding moment — before the seller's Tuesday revocation. That dispatch-equals-acceptance principle is the mailbox rule.
Answer Options
A
Mirror-image ruleB
Time is of the essence clauseC
Mailbox ruleD
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Related Topics & Key Terms
Key Terms:
mailed Mondayrevocation Tuesdaydispatch timingcommon-law defaultbinding moment
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