On April 1, Fine Corp. faxed Moss an offer to purchase Moss's warehouse for $500,000. The offer stated that it would remain open only until April 4 and that acceptance must be received to be effective. Moss sent an acceptance on April 4 by overnight mail and Fine received it on April 5. Which of the following statements is true?

A. No contract was formed because Moss sent the acceptance by an un-authorized method.

B. No contract was formed because Fine received Moss' acceptance after April 4.

C. A contract was formed when Moss sent the acceptance.

D. A contract was formed when Fine received Moss's acceptance.

No contract was formed because Fine received Moss' acceptance after April 4.

Explanation:

A contract is formed when an offer is made followed by an acceptance by the other party under stated terms. Only on acceptance will the contract be considered valid.

Fine Corp. faxed Moss an offer to purchase Moss's warehouse for $500,000, the offer is open till April 4.

Moss sent an acceptance on April 4 that was recieved on April 5. The contract has not been formed because the acceptance was not received on the day stated in the agreement.

The onus of the acceptance getting to Fine Corp lies with Moss. He would have used a means of transferring the acceptance that will ensure delivery on April 4