On June 1, Offeror mailed an offer to Offeree. On June 3, Offeror mailed a revocation. On June 4, Offeree received the offer and immediately mailed an acceptance. On June 5, Offeree received the revocation. On June 6, Offeror received the acceptance. Is there a contract?

Answer options:

No, because the revocation was mailed before the acceptance.

Yes, because the acceptance was mailed before the revocation was received.

No, because the Offeror received the acceptance after mailing the revocation.

Yes, because the offer was irrevocable.

How to approach this question

Timeline it: 1. Offer Sent. 2. Revocation Sent (Not effective yet). 3. Acceptance Sent (EFFECTIVE NOW - Contract Formed). 4. Revocation Received (Too late).

Full Answer

B.Yes, because the acceptance was mailed before the revocation was received.✓ Correct

Yes, because the acceptance was mailed before the revocation was received.

Under the Mailbox Rule, acceptance is effective upon dispatch (June 4). Revocation is effective only upon receipt (June 5). Since acceptance occurred before the revocation was effective, a contract exists.

Common mistakes

Thinking revocation is effective on dispatch.

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