On Thursday, Angie decided to accept Harry's counteroffer for the purchase of his house. She signed the counteroffer and placed it in the mail. On Friday, Harry decided that he had asked too low a price for the house, so he faxed Angie stating that the counteroffer was withdrawn. On Saturday, Harry received Angie's acceptance in the mail. Under the mailbox rule, which of the following is true?

a. Harry withdrew his offer, so no contract was formed

b. Harry did not withdraw his counteroffer in time, so a contract was formed

c. Harry may not make a counteroffer

d. Harry's withdrawal was ineffective since it was not in writing

b. Harry did not withdraw his counteroffer in time, so a contract was formed.

Explanation:

Angie's acceptance was placed in the mail before Harry communicated his revocation (Before Harry says he is no longer interested) of the counteroffer. If the mailbox rule (the acceptance of an offer takes place when communicated) applies, in this case, it means that Angie's acceptance was effective and a binding contract was formed. (also know that there are some exceptions to the mailbox rule example, some purchase agreements used all the time states that the mailbox rule does not apply)

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