ASSIGNMENT 13Business Law Assignment 1Contract Formation – Rock FightQuestion 1The mailing communication between the Beaver Stone Co. and Dionne related to creating an Offer which was 1) communicated by the Beaver Stone Co. through the letter and sent by mail on May 2nd, stating their willingness to sell 400 tonnes of Grade A scrap mica at $200, and 2) received by Dionne by mail. Acceptance of that Offer occurred during their non-instantaneous communication through the regular mail when the Postal Rule is applied. By the Rule, the Acceptance occurs at the moment when the Offeree sends the letter, even if it is not received by the Offeror or is not delivered for some reason. Therefore, the fact that Beaver Stone Co. never received the acceptance letter is not a valid reason to deny the formation of the contract. The Postal Rule states that the acceptance is effective when it is placed in the mailbox even if the letter is lost in the system, so contact was formed.The initial contract was placed on hold when Dionne could not commit to the contract without doing more external research. Once he did his research, Dionne sent a letter to Beaver Stone and an intent to accept their initial contract but it was never received by the company. Since it was never received, the contract is not legally binding to the original terms even though it was written before the increase in pricing. Beaver Stone Co sent a new offer for the same product with an increased price showing the counteroffer in the contract as the first one was terminated when Dionne took the time to think about it. However, in this circumstance, this contract is legitimate in contrast to the one accepting the initial offer by Dionne because it was not lost in transit and made it in the hands of Dionne.