A contract is created when ________.
A) the acceptance has been received by the offeror
B) an acknowledgement is sent by the offeror to the offeree of receiving an acceptance
C) the offeree dispatches the acceptance
D) a sale of goods has been performed under the contract

Question

Quizplus · Accepted Answer

According to the mailbox rule, a contract is created when the offeree dispatches the acceptance. This means that the contract is formed at the moment that the offeree puts the acceptance into the mail, regardless of whether or not the offeror has received it yet. Once the acceptance has been dispatched, the contract is considered binding between the parties. Therefore, choice C is the correct answer.

A Contract Is Created When ________