Mari tells Daniel that she will mow his yard during the summer for $800. Daniel considers it and then drops a note in the mail to Mari telling her that he rejects her offer. However, he thinks about it again and calls her to tell her that he accepts the offer before she receives his rejection. Which of the following is true under the mailbox rule?
A) The offer was no longer outstanding because of the rejection.
B) Daniel could not accept verbally.
C) Daniel validly accepted, but his acceptance was revoked when Mari received the rejection.
D) The acceptance was invalid because the mailbox rule requires that the time of payment be specifically set forth before an acceptance is formalized.
E) The acceptance is valid, and the rejection has no effect.

Question

Quizplus · Accepted Answer

The mailbox rule states that an acceptance is effective upon dispatch, provided that the mode of acceptance is either expressly or impliedly authorized by the offeror. In this case, Daniel's acceptance via phone call is effective when he made the call, before Mari received the rejection letter. Therefore, the acceptance is valid, and the subsequent arrival of the rejection letter has no effect on the validity of the acceptance.

Mari Tells Daniel That She Will Mow His Yard During