On April 1, Fine Corp. faxed Moss an offer to purchase Moss' 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 correct? a. No contract was formed because Moss sent the acceptance by an unauthorized 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.

Question

Business

Lowe

24 January, 18:04

On April 1, Fine Corp. faxed Moss an offer to purchase Moss' 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 correct? a. No contract was formed because Moss sent the acceptance by an unauthorized 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.

+5

Answers (1)

Know the Answer?

Alessandra Pope · Answer 1

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

Explanation:

The mailbox rule established that an acceptance is effective if it has been sent by a means authorized by the offeror, or by the same means used to sent the offer.

Fine Corp. didn't state by what means it would accept an offer, but if Moss would have faxed his acceptance at 23:59 April 4th, the acceptance would have been valid. But since Moss used an overnight mail service, his acceptance was not received on time and therefore is not effective.