Assume an Offeree Mails a Rejection to the Offeror on November

question 77

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.
• 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:

Promissory Note

A promissory note is a financial instrument in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand.

Key Parties

Critical or main individuals or groups involved in an event, decision, or transaction.

Maturity Value

The amount payable to an investor at the end of a debt instrument's life, including principal and interest.

Note Receivable

A financial asset representing a written promise for future amounts to be received, typically including interest by another party.