Contract Law Doctrines Explained

Summary

Contract law addresses abusive behavior in the bargaining process through doctrines like unconscionability, good faith, duress, and misrepresentation. In a contract scenario where acceptance is conditioned on receipt, the mailbox rule does not apply, and revocation can be effective if communicated before acceptance is received.

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On */*, S sends B a letter in which she offers to sell her boat to B for $*,*. The letter states that “Your mailed acceptance will not be effective until receipt, which must occur on or before */*.” On */*, B sends a letter of acceptance. On */*, S calls and tells B that she is revoking her offer. B’s letter reaches S on */*. As between S and B: *) There is no contract. Since S changed her mind before she received B’s letter, there was not a meeting of the minds. *) There is no contract. The mailbox rule does not apply and S’s revocation was effective. *) There is a contract. B’s acceptance was effective when sent subject to the condition that it arrive by */*. *) There is a contract. B’s sending of the letter on */* created an option contract which prevented S’s revocation from being effective.
In this scenario, the correct answer would be:
*) There is a contract. B’s acceptance was effective when sent subject to the condition that it arrive by */*.
- The acceptance was sent before the revocation and received by the deadline, fulfilling the condition specified in the offer.
I got this from anther source - *) There is no contract. The mailbox rule does not apply and S’s revocation was effective. what is the correct answer for the exam - search the whole web.
Based on the given scenario, the correct answer is:
*) There is no contract. The mailbox rule does not apply and S’s revocation was effective.
Here's why:
- The mailbox rule typically makes an acceptance effective upon dispatch. However, in this case, S's offer explicitly stated that acceptance would not be effective until receipt.
- S revoked the offer before receiving B’s acceptance, making the revocation effective.