Question

Fine Mining Corporation offers to sell Great Foundries, Inc., seven tons of aluminum. Great Foundries sends an acceptance via Fine Mining's authorized mode of communication. This acceptance is effective when it is:

a. Received by Fine Mining
b. Dispatched by Great Foundries
c. Acknowledged by a third party
d. Processed by Fine Mining's accounting department

Answer 1

b. Dispatched by Great Foundries

The acceptance of a contract offer by Great Foundries is effective when it is dispatched, according to the mailbox rule in contract law.

Step-by-step explanation:

The question is addressing the rules related to contract formation, specifically when an acceptance of an offer becomes effective. Under the mailbox rule, which is a common rule in contract law, an acceptance is generally effective upon dispatch if the parties have not agreed otherwise and the acceptance is transmitted in a manner expressly or impliedly authorized by the offeror. Therefore, the acceptance by Great Foundries is effective when it is: b. Dispatched by Great Foundries. This rule encourages prompt acceptance by assuring the offeree that the offer will not be revoked once the acceptance is dispatched, thereby creating a binding contract.