The common law mailbox rule is a common topic in bar and law exams. The rule governs when an offer is accepted. The law only applies to communications by mail or any type of delivery service. Your state might have a law that determines if and how the mailbox rule applies to email and SMS. The law does not apply to face-to-face conversations or phone calls. Although the letter did not reach Oliver, the offer was accepted on January 15. This means that if Oliver sends a letter to Alan on January 14 revoking the offer, but the letter doesn`t arrive until January 16 – too late. The offer was accepted on January 15. Oliver`s dismissal would not take effect until January 16, when it would be received.
The mailbox rule applies only to assumptions. We do not care when the revocation was sent, but only when it was received. But it is important to us when the acceptance has been sent. Let`s say Oliver sends a letter to Alan offering to paint Alan`s fence (does anyone send such letters?). Perhaps Oliver Alan says in the letter that Alan has until January 16 to accept the offer. Alan sends a properly addressed letter to Oliver, who accepts the offer some time before January 16 – let`s say he sends the letter on January 15. Good. The offer was accepted on January 15.
This is the mailbox rule. As the acceptance was sent by post, the acceptance became effective upon dispatch. California, in the minority of states, also applies the mailbox rule to option contracts. In Palo Alto v. BBTC Co., 11 Cal.3d 494 (1974), the Court held: “In California. The “effective at the time of posting” rule has been sanctioned by law and constitutes the declared policy of this State. As explained above, if the notice of exercise of the option is deemed to be the acceptance of an irrevocable offer, that notice clearly falls within the scope of section 1583. In order to be efficient with shipping, the acceptance must be sent on time and correctly. With regard to speed, the recipient must respond within a reasonable time if the supplier does not specify a time limit for acceptance. If a period is specified, the general rule is that the period begins to run when the offeree receives the offer. For example: If the bidder does not specify a certain means of acceptance and the target recipient uses an inappropriate means of acceptance, the acceptance may still be valid. However, the mailbox rule does not apply, and acceptance does not take effect until the provider actually receives it.
The following is an exception to the mailbox rule. Let`s say Alan declines the offer on the 15th. If the rejection notice reaches Oliver first, the offer is rejected. If acceptance comes, it is now a counter-offer. Alan lost his power to accept the offer. Below is a video on the USLawEssentials YouTube channel about the mailbox rule. The mailbox rule is a default rule that applies when the provider does not have specific requirements for how it is accepted. According to this rule, the recipient accepts the offer when it is sent to the tenderer. This could include dropping it off by mail or sending it with a courier. This may also include the declaration of acceptance by e-mail or other electronic communication (regardless of whether the provider actually verifies or reads the e-mail).
Thus, if an offer is addressed to more than one addressee, the first recipient who accepts in any way (including submitting the acceptance by mail) has a binding contract. The mailbox rule raises interesting questions when the recipient sends both an acceptance and a rejection to the vendor. Again, the mailbox rule states that an acceptance becomes effective upon sending and a rejection takes effect upon receipt. What happens if a recipient decides to accept, then changes their mind and rejects, or vice versa? The rule is as follows: an offer is considered accepted as soon as the addressee sends his acceptance by mail, provided that he addresses the acceptance correctly. There you go. There is an exception where the recipient sends more than one message, and I`ll talk about that below. Everything else in the exam is meant to confuse you. The mailbox rule applies to nothing but mail or courier and only applies to acceptances – not withdrawals, counteroffers, etc. What do you think about the mailbox rule? Should it be the default rule in contracts? Why or why not? Practical question: Pamela is a musician and writer.
She offers Devon and Mark to sell their copyrights to a popular song. Devon dropped his acceptance of the offer by mail Friday night. On Saturday morning, Pamela meets Mark and signs an agreement that gives her the copyright. What is the likely outcome in this situation? The P.O. Box Rule (also known as the reservation rule), which is the standard contractual rule for determining when an offer is accepted, states that an offer is deemed accepted at the time of notification of acceptance (whether by postal mail, etc.). The parties can change their contract so that the mailbox rule is not used and determine between them when an offer is considered accepted. The rule stems from the British case of Adams v. Lindsell (1818) B&Ald 681, when the court adopted doctrine and applied it to bilateral treaties. As with most contract laws, the P.O. Box rule varies from state to state. The general rule is that acceptances take effect upon shipment (when shipped).
Everything else becomes effective when the supplier actually receives them. As you will remember your 1L days, contracting requires both an offer and an acceptance. According to the mailbox rule, acceptance by mail is usually effective upon sending. On the other hand, a refusal by post is effective only upon receipt. It becomes a little more difficult when the party who received the offer (the recipient) changes their mind. This results in two cases: At first, the mailbox rule seems quite simple. You`ve put something in the mail and accepted an offer – how difficult can that be? But as in all areas of law, the letterbox rule has nuances and exceptions. Let`s simplify these nuances so that you have a clear understanding of the mailbox rule and how it works! In other words, in countries that have adopted the restatement rule, the letterbox rule doctrine applies to bilateral contracts, but not to option contracts.
Also note that the provider can dictate how the recipient can accept the offer. For example, Oliver could avoid all this confusion by telling Alan, “The only way to accept this offer is to get to my office before January 16” – or “The only way to accept this offer is to contact me on January 16. January to personally deliver your written acceptance. But if it does not specify how the offer is to be accepted, then we must remember the mailbox rule. Your examiner will throw you a lot of data to confuse you. Restatement (Second) of Contracts § 63 (1981) reflects the view of many States and distinguishes between an option treaty and a bilateral treaty. The restatement reads as follows: “Unless otherwise provided in the Offer, (a) an acceptance made in the manner and by a means invited by an Offer will be effective and will complete the manifestation of mutual consent once withdrawn from the possession of the Target Recipient, whether or not it reaches the Supplier; but (b) acceptance under an option contract does not take effect until receipt by the tenderer. If the rejection is sent first, but the acceptance comes first, a contract is concluded. In this case, the subsequent refusal will not be valid as a refusal and will not release the recipient from his contractual liability.