Which of the following answers contains a valid contract:

Question

BlackTom AI · Accepted Answer

Let’s break down each choice by applying contract formation rules: offer, acceptance, and the effect of communication methods like mail and fax.
Option A says: 'Both answers do NOT contain a valid contract.' We need to test each of the other options before accepting this blanket claim. If any option actually forms a contract, Option A would be false.
Option B describes Andy’s offer to buy tickets and Robert’s sequence: a rejection by two-day mail on Day 2, followed by an acceptance by fax on Day 3. In contract law, a valid rejection terminates the offer when communicated. Once the offer is terminated, a later acceptance—even if it arrives after the rejection—does not create a contract because there is no surviving offer to accept. Therefore, this option does not result in a valid contract, since the offeree rejected the offer before attempting to accept, extinguishing the offer.
Option C describes Mark offering Whitney on Day 1, Whitney accepting by two-day mail on Day 2, and Mark revoking by fax on Day 3. Here, the critical question is when the acceptance becomes effective. Under the mailbox rule, an acceptance is generally effective upon proper dispatch (when Whitney mailed the acceptance on Day 2). If the offeror attempts to revoke after that moment (Day 3) but the acceptance has already been dispatched, the contract is formed at the moment of dispatch, and the revocation does not defeat it. The sequence thus supports a valid contract because acceptance was communicated (mailed) before the revocation was communicated.
Option D claims 'Both answers contain a valid contract.' Given the analysis above, that would require both B and C to form contracts. Since B does not form a contract due to termination by rejection, this option is incorrect.
To summarize each option: Option A is incorrect because Option C does in fact establish a valid contract. Option B is incorrect due to termination of the offer by rejection before acceptance could bind the parties. Option C is correct because the acceptance dispatched by Whitney precedes Mark’s revocation, consistent with the mailbox rule. Option D is incorrect because it asserts two valid contracts, which is not the case given Option B’s rejection scenario.
Note how the mailbox rule plays a pivotal role in Option C: the dispatched acceptance on Day 2 is effective even though the revocation arrives on Day 3, so long as the rejection did not terminate the offer earlier and the acceptance was properly dispatched. This nuance often distinguishes a formed contract from a failed bid in scenarios with asynchronous communications.

STRAT 3410-003 Fall 2025 Exam #3- Requires Respondus LockDown Browser

Which of the following answers contains a valid contract:

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