A. On January 1, Britta sends Jeff an offer via U.S. mail, which is received by Jeff on January 4. On January 3, Britta sends a revocation of the offer (again via U.S. mail), which was received by Jeff on January 6. Before receiving the revocation, Jeff sent an acceptance (using U.S. mail) on January 5. Do Jeff and Britta have a binding contract?

1. Yes, the acceptance was effective on the 6th once all correspondence was received.
2. No, the mailbox rule applies here, and the revocation was therefore effective on the 3rd.
3. Yes, the acceptance was effective on the 5th and formed a contract, and the revocation did not become effective until its receipt, which was on the 6th and too late because acceptance had already occurred.
4. No, the acceptance was effective on the 5th and formed a contract, but the revocation on the 6th negated the acceptance.

B. Tara raises horses and promised to give her best friend's niece a pony. Tara advised the girl's father, Jon, that he would need to enclose a section of his property to keep the pony safe and recommended a specific type of fencing. Jon bought the recommended materials and had the fence built on his property. Tara got in a fight with her best friend and now refuses to give Jon's daughter the pony. Tara will be liable to Jon for the cost of fencing his property based on the theory of

1. Promissory estoppel
2. Substantial performance
3. Unjust enrichment
4. Quasicontract

C. Which is not true?

1. Consequential damages are foreseeable damages that arise from a party's breach of a contract.
2. Punitive damages are almost never available in contract disputes.
3. Damages are awarded for whatever injury a nonbreaching party suffers, whether or not the breaching party could have foreseen the injury.
4. Normally, when a nonbreaching party has been damaged by a breach of contract, he or she has a duty to mitigate those damages.

D. Liquidated damages are damages that

1. Are an estimate of the damages likely to be sustained from a breach
2. Punish the breaching party, thereby incentivizing performance
3. Are illegal
4. Fluctuate with market conditions