On January 8,Quastrar,Inc.sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies.On January 18,Hylavian mailed a letter to Quastrar accepting the offer.Quastrar received the acceptance letter on January 20.On January 17,Quastrar sent a letter revoking the offer.Hylavian received this letter on January 21.A contract between Quastrar and Hylavian
A)was not formed because the revocation was effective before the acceptance was sent.
B)was not formed because the revocation was effective before the acceptance was received.
C)was formed on January 18.
D)was formed on January 20.

Question

Quizplus · Accepted Answer

A contract between Quastrar and Hylavian was formed on January 18 when Hylavian mailed the acceptance letter. At this point, Quastrar was still unaware of Hylavian's acceptance, so their earlier revocation letter is irrelevant. Once an offer is accepted, it becomes a legally binding contract. Therefore, the contract was formed before Quastrar received Hylavian's acceptance letter on January 20.