Contracts

Question 1

What is the Mailbox Rule?

Answer 1

Acceptance is valid when mailed, but revocation is valid when received.

Question 2

What are the exceptions to the Mailbox Rule?

Answer 2

1. Offer states otherwise
2. Irrevocable Offer
3. Rejection Sent First

Question 3

What constitutes an indirect revocation?

Answer 3

The offeror engages in conduct that indicates he’s changed his mind and the offeree is aware of the conduct.

Question 4

When is a revocation not allowed?

Answer 4

1. An option is a promise to keep the offer open that is paid for.
2. In a sale of goods, if a merchant promises in a signed writing to keep the offer open, the offer is irrevocable. [Merchant’s Rule]