On June 1, Kareem sends Fatima an e-mail offering to build her a new garage for $20,000. In his e-mail, Kareem wrote, "acceptance by certified mail is advisable." On June 2 at 8 a.m., Kareem sends Fatima a certified letter attempting to revoke the offer. At 2 p.m. the same day, Fatima mails Kareem a letter via certified mail attempting to accept his offer. Under these circumstances, _____.
A) the parties do not have a contract until Kareem receives Fatima's acceptance
B) Kareem's revocation is effective and the parties do not have a contract
C) Fatima's acceptance is effective upon dispatch
D) the parties do not have a contract as the trade usage is telegrams and not certified mail

Question

Quizplus · Accepted Answer

In the given scenario, Fatima's acceptance is effective upon dispatch. Kareem's e-mail offer said: "acceptance by certified mail is advisable." So, the parties have a contract because Kareem expressly authorized acceptance by mail. Therefore, Fatima's mailed acceptance would be effective when dispatched. Kareem's revocation would be ineffective, since it was not actually received (as revocations must be) before the contract was created.

On June 1, Kareem Sends Fatima an E-Mail Offering to Build