Jed, who lived 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 $1800, the offer to be open until Friday noon, November 2. Jed told the store owner to send a letter of acceptance since he (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?
A) Sending a letter by mail was not a reasonable method of acceptance.
B) The offer lapsed before the store owner accepted.
C) The offer was revoked before the store owner accepted.
D) The letter of acceptance was effective when it was received, and by then Jed had sold the guitar, so there was no contract.
E) The acceptance was effective before the offer lapsed, so there was a contract between Jed and the store owner.

Question

Quizplus · Accepted Answer

The acceptance was effective when it was sent by mail on November 1, before the deadline of November 2, creating a contract between Jed and the store owner according to the mailbox rule, which states that an acceptance is effective upon dispatch when the offeror specifies that acceptance can be made by mail.

Jed, Who Lived on Cape Breton Island, Needed Money for a Trip