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Which of the following statements regarding revocation and acceptance of contract offers is correct?A. A revocation generally is effective when received, and an acceptance generally is effective when received.B. A revocation generally is effective when received, and an acceptance generally is effective when dispatched.C. A revocation generally is effective when dispatched, and an acceptance generally is effective when dispatched.D. A revocation generally is effective when dispatched, and an acceptance generally is effective when received.

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Answer:

The correct option is B: "A revocation generally is effective when received, and an acceptance generally is effective when dispatched."

Explanation:

In revocation and acceptance of contract offers, the mailbox rule comes to limelight. This means that a revocation is effective when it is received and an acceptance is termed effective when it has been dispatched. The mailbox rule asserts that a contract is formed if an acceptance is dispatched by the offeree prior to receiving a revocation which was sent by the offeror.

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