National Real Estate Practice Exam

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What is the mailbox rule in contract acceptance?

Acceptance takes effect once received by the other party
Acceptance is only valid if confirmed in person
Acceptance becomes effective as soon as sent in the mail
Acceptance requires a signed delivery confirmation

The correct answer is: Acceptance becomes effective as soon as sent in the mail

The mailbox rule in contract acceptance states that acceptance of an offer becomes effective as soon as it is sent, typically through the mail or another communication method, as long as it is sent in a manner authorized by the offeror. This means that the acceptance is considered valid even if the offeror has not yet received it. This rule is important in contract law as it provides clarity on when an acceptance is legally recognized. In practical terms, it means that the person accepting the offer does not need to wait for it to be received by the other party before the acceptance is effective. This rule is designed to create certainty in communications and transactions, protecting the interests of the acceptor by ensuring their acceptance is binding once dispatched. In contrast, the other options do not align with the established principles of contract law. For instance, requiring acceptance to be confirmed in person or needing a signed delivery confirmation would contradict the efficiencies that the mailbox rule provides in transactions. Additionally, acceptance being valid only upon receipt would create ambiguity and delay, which the mailbox rule seeks to eliminate.