COMM 393 Study Guide - Midterm Guide: Fundamental Breach
Document Summary
Commerce 393 practice midterm answer guide feb 2013. Offer and acceptance are the main elements of a contract, and when they are present, a contract has usually been formed. Wendy made francine"s an offer on october 7, and francine"s accepted on october 8. (consideration was in the form of their mutual promises to buy and sell). A contract between francine"s and wendy was formed on october 8. Francine"s mailed an offer to beth on october 1. There is the mutual exchange of promises to buy and sell. The postal acceptance rule says that if an offer comes by mail without any directions regarding acceptance or where acceptance by mail is stipulated, acceptance is effective when the letter is mailed. In this case it was reasonable to accept by mail because the offer was by mail. Revocation is permitted at any time prior to acceptance. Francine"s did revoke the offer, but on october 22, after acceptance had occurred.
