Assume an Offeree Mails a Rejection to the Offeror on November

question 54

Multiple Choice

Assume an offeree mails a rejection to the offeror on November 1.This rejection arrives at the offeror's place of business on November 5.In the meantime,on November 4,the offeree sends the offeror an acceptance that arrives November 6.Which of the following statements correctly describes the situation?

• A) There was no contract because when an acceptance follows a prior rejection,the first communication to be received by the offeror is the effective one.
• B) There was a contract since the acceptance was mailed prior to the time the rejection was received.
• C) There was no contract because the rejection was mailed first.
• D) There was no contract because the acceptance was mailed more than three days subsequent to the rejection.

---

Definitions:

Exchange Rate

The exchange value of one currency against another.

Identical Basket

A concept used in economics to compare the cost of a specific set of goods and services across different geographical locations or time periods.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess their purchasing power.

Exchange Rate

The value of one currency for the purpose of conversion to another, which determines how much foreign currency one can get with the domestic currency.