A landlord sends a written offer to a potential tenant, stating, 'I will rent my apartment to you for $1,500 per month, starting January 1, if you sign and return this lease agreement by December 15.' The potential tenant signs the lease on December 12 but mails it back on December 20. The landlord receives the signed lease on December 22 and notifies the potential tenant that the offer has lapsed. Has a contract been formed?
No, because the tenant failed to comply with the deadline set by the landlord in the offer.
Yes, because the landlord ultimately received the signed lease on December 22.
Yes, because acceptance occurred when the tenant signed and mailed the lease.
No, because the mailbox rule does not apply when there is a delay in communicating the acceptance to the offeror.
The correct answer is based on the mailbox rule, which provides that an acceptance becomes effective when it is dispatched, unless the offer specifies that acceptance is effective only upon receipt. In this scenario, the landlord's offer instructed the tenant to return the signed lease by December 15, which imposes a condition upon the timing of acceptance. By failing to meet the condition, there is no valid acceptance, and therefore, no contract is formed. Many examinees confuse conditions set by the offer versus standard rules of contract law like the mailbox rule. Applying this standard, the best answer identifies that the offer lapsed due to the tenant’s delay.
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