The question of whether Lake’s acceptance of Penn’s offer was properly communicated is reliant upon the nature of acceptance. The acceptance of an offer may only be valid if it is express or implied directly to the offeror. It must fall within the prescribed time constraints, and acceptance must be absolute and unconditional. The mailbox rule states that an offer is considered accepted at the time that the acceptance is communicated, not upon arrival. Lake mailed the followed note to Penn on April 15, “Dear Beverly: I have decided to take you up on your generous proposition…” The note never arrived to Penn. However, according to the mailbox rule, the offer was considered accepted upon the mailing of the note. Therefore, Lake’s acceptance of Penn’s offer to sell half of her business for $150,000 is valid, thus forming a binding contract between the two parties.

Lake and Penn Enforceability

Whether or not Beverly Penn is guilty of a breach of contract is reliant upon the question of if the contract is valid and enforceable. A valid contract is formed when one party, the offeror, makes an offer that is accepted by the other party the offeree. The offeror is free to revoke the offer at any point before the offeror accepts. A breach of contract occurs when the agreement is not kept, because one party to the contract does not complete their obligation according to its terms. When Penn made an offer to sell half of her business to Lake for $150,000, Lake accepted, thus forming a valid and enforceable contract. On April 25, Penn contacted Lake to notify him that she filled the position, after the contract had already been