Contracts
A buyer's offer is accepted by the seller. Before the buyer receives notice of acceptance, the buyer calls to revoke the offer. Which statement is CORRECT?
AThe revocation is effective because it was communicated before the buyer knew of acceptance
BThe contract is formed because acceptance occurred before the revocation was communicated✓ Correct
CThe agent can decide which action prevails
DAREC must mediate the dispute
Explanation
Under the mailbox rule and general contract law, acceptance of an offer is effective when dispatched (sent/communicated) by the offeree, not when received by the offeror. If the seller accepted before the buyer's revocation reached the seller, a binding contract was formed.
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