Assume an Offeree Mails a Rejection to the Offeror on November

question 7

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.

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Definitions:

Financial Reporting

The process by which a company discloses its financial performance to stakeholders, including investors and regulators, typically through financial statements.

Interfirm Comparisons

The analysis and evaluation of a company's performance or financial health in relation to its competitors or industry standards.

Deferred Tax Asset

An item on a company’s balance sheet that represents the difference in timing between when a tax is accrued and when it is paid, potentially reducing future tax liability.

Tax Rate Change

An alteration in the percentage at which an individual or corporation is taxed, which can affect financial planning and net income.