Question

When an offeree deposits an acceptance in a mailbox, it creates a binding contract at that moment even if the offeror has already mailed a revocation and it is on the way to the offeree.

True
False

Answer 1

Answer:- True.

This statement is true as it is a case of 'mailbox rule'. This rule states that a contract would be considered as accepted by the offeree when the offeree would drop the letter in the mailbox rather than being received by the offeror. On the other hand, an offer would be valid and be a binding contract until and unless a revocation would be received by the offeree and the revocation must be received by the offeree before dropping the acceptance in the mailbox.

Hope this helps :)