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Question

On Monday, Company A sends the following letter to

Company B: "We have 500 widgets available for you to purchase. We propose to sell them to you for $100 each. This offer is to remain open until Friday." On Thursday, Company B sends the following reply by mail: "We accept your offer." Company A receives this letter on Monday.

Have the two Companies formed a legally binding contract?


Yes, because of the mailbox rule

No, because of a lack of consideration

Yes, because Company A's time limit is ineffective

No, because Company A's offer in not definite

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