Mailbox Rule

Question 1

Mailbox Rule

Answer 1

Usually looking at a bilateral contract

Email and faxing are considered dispatching

Acceptance is effective upon dispatch; contract is formed

Does not apply on rejections (rejections/revocations are effective upon receipt)

Acceptance 1st –> Rejection 2nd –> Acceptance generally upon dispatch, unless O’R relies on rejection (sales car), not just smiling = reliance

Rejection 1st –> Acceptance 2nd = Acceptance by receipt. Whichever gets there first

Question 2

Detrimental Reliance Rule

Answer 2

A -> MBR applies unless R is sent and OR detrimentally relies on rejections (Or sold the offered item to a third party) -> MBR does not apply

Question 3

OE transmits acceptance by an unreasonable or unauthorized mode

Answer 3

Traditional: MBR will not apply

Modern: As long as Or receives it within same time frame that it would have arrived if a reasonable mode of transit was used -> MBR applies

Question 4

Precatory language

Answer 4

May, I suggest, it’s up to you

Please, not exclusive, send reasonable way

Question 5

Exclusive mode

Answer 5

Must

Question 6

Shall

Answer 6

Mandatory in most jurisdictions

Question 7

Dispatched by own employee

Answer 7

Acceptance upon receipt

Question 8

Dispatched by agent

Answer 8

Acceptance upon dispatch

Question 9

Exclusive mode of transit/method of acceptance

Answer 9

If there is an exclusive mode/method of acceptance transmittal indicated in the offer, it must be used. If not, the acceptance becomes a counter-offer

Question 10

What if the O’E reasonably dispatched acceptance but was careless in addressing it?

Answer 10

Traditional View/Majority Rule: MBR will not apply, and acceptance is not effective until received by the O’R

Modern Rule: MBR will still apply if the acceptance is received by the O’R in the same time frame that it would have been received if the O’E had not been careless regarding the transmittal

Question 11

Irrevocable Offers

Answer 11

MBR does not apply to irrevocable offers