Walt's Pool World's fax to Pat's Pumps: "I'll take 10 4 hp pool pumps @ $175 each."
Pat's Pumps' return fax: "Ok.Will deliver tomorrow AM."
Pat and Walt:
A)do not have a contract because the faxes will not satisfy the statute of frauds.
B)do not have a contract because of the mirror image rule.
C)had a contract when Pat's fax was sent.
D)had a contract when Pat's fax was received.

Question

Quizplus · Accepted Answer

A contract was formed when Pat's Pumps sent the fax accepting the offer made by Walt's Pool World. This is known as the "mailbox rule" which states that an acceptance is effective when it is sent, not when it is received. Therefore, the contract was formed when the acceptance was sent, and they both agreed to the terms of the contract.

Walt's Pool World's Fax to Pat's Pumps: "I'll Take 10