The Rule That If the Offer States That It Must

question 11

Multiple Choice

The rule that if the offer states that it must be accepted by mail, the acceptance becomes valid the moment it is deposited in the mail (even if it is never received by the offeror) is known as which of the following?

• A) The mirror image rule
• B) The postal rule
• C) The mailbox rule
• D) The stationery rule

---

Definitions:

Terms of Sale

The conditions under which a sale is made primarily with respect to payment. Terms include a date on which payment is due and often specify a prompt payment discount that may be taken if payment is made within a specified time.

Lock Box Systems

A service provided by banks to companies for the quick collection of payments from customers by directing those payments to a special post office box.

Float Management

The practice of managing the time difference between issuing and clearing checks to optimize the available cash flow.

Lock Box Systems

A service offered by banks to companies for the receipt of payment from customers, involving the collection of payments in regional post office boxes and processing them quickly.