Mailbox Rule

Question 1

What is the mailbox rule?

Answer 1

Contract is formed the minute the offeree dispatches the contract in the mailbox.

Question 2

When is acceptance effective?

Answer 2

Acceptance is effective on dispatch

Question 3

When is revocation effective?

Answer 3

Revocation -only effective when the offeree has received it verbally, effective on receive

Question 4

When is rejection effective?

Answer 4

Rejection - only effective when the offeror has received it verbally, effective on receive

Question 5

An example of when the mailbox rule is valid

Answer 5

ex) On Monday the offeror mails it on Monday. The offeror also revokes the contract on Tuesday. On Wednesday the offeree receives it and accepts it. The offeree sees the revoke on friday. The offeror receives the acceptance on saturday.
Answer: Contract was formed on wednesday

ex) On Saturday the offeror mails it to the offeree. On Tuesday the offeree receives it and dispatches it on Wednesday. The offeree also rejects it on Thursday.
Answer: Contract was formed on Wednesday
CONTRACT IS FORMED WHEN THE OFFEREE MAILS IT

ex) On Monday the offeror mails it. On Wednesday the offeree receives and accepts.

Question 6

Example of when the contract is invalid using mailbox rule

Answer 6

ex) On Saturday the offeror puts it in the mail. On Tuesday the offeree sees and revokes it. On Wednesday the offeror sees the revocation.
Answer: Contract is not formed