CIPS Exam L4M3 Topic 3 Question 29 Discussion

Actual exam question for CIPS's L4M3 exam

Question #: 29
Topic #: 3

[All L4M3 Questions]

According to mailbox rule in some common law countries, at which point the offeree's acceptance will be effective?

AWhen the letter of acceptance is opened and its contents read by the offeree.

BWhen the letter of acceptance is received by the offeror.

CWhen the letter of acceptance has been written.

DWhen the letter of acceptance has been correctly addressed, its postage paid, and posted.

Show Suggested Answer

Suggested Answer: D

When parties do not negotiate face-to-face, a key Question: becomes when

things like acceptances, rejections and revocations take effect. The general rule is that acceptances are effective on dispatch (when they are mailed). Everything else becomes effective when the offeror actually receives them. This idea is codified by the ''mailbox rule'' which states that acceptance is effective on dispatch, even before the offeror has received it. (The one minor exception to this rule involves option contracts for which acceptances are not effective until they are received by the offeror.)

- The Mailbox Rule

- CIPS study guide page 34

by Mollie at Mar 09, 2024, 02:13 AM

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