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 written acceptance has been passed between the offeror and the offeree

Question

Quizplus · Accepted Answer

The general rule is that a contract is created when the offeree dispatches (sends) the acceptance. This is known as the "postal rule" or "mailbox rule". The offeror does not need to receive the acceptance for the contract to be binding, as long as the acceptance was properly dispatched. Choice A is incorrect because it suggests that the offeror needs to receive the acceptance, which is not true under the general rule. Choice B is incorrect because an acknowledgement of receiving an acceptance does not create a contract, only the acceptance itself does. Choice D is incorrect because a written acceptance is not required for a contract to be created - an acceptance can be oral or implied through conduct.

A Contract Is Created When ________