Lecture: The Mailbox Rule in Contract Formation

Overview

• Importance: Essential for understanding contract formation and timing of acceptance and revocation.
• Context: Complements previously skipped content in PowerPoint lecture.

The Mailbox Rule

• Purpose: Determines the timing of acceptance and revocation in contract law.
• Necessary Condition: A valid, living offer must exist for a contract to be accepted.
• Usefulness: Critical for exams and real-life legal scenarios.

Key Concepts

• Timing of Contract Events:
  • Offer
  • Revocation
  • Acceptance
• Understanding Effectiveness: Knowing when actions are effective, not just when they occur.

Rules of the Mailbox Rule

Always Rule: Revocation

• Effective: When received by the offeree, not when sent.
• Example: Offer sent Monday, revocation mailed Tuesday, received Friday. Revocation effective Friday.

Sometimes Rule: Acceptance

• Effective Timing:
  • Can be effective when sent or when received.
  • Depends on using authorized means of communication.

Authorized Means of Communication

• Example 1: Email specified, acceptance via email is effective when sent.
• Example 2: Snail mail specified, acceptance effective when sent if mail is used.
• Non-authorized Means: Acceptance effective upon receipt if unauthorized method is used.

Examples from Handout

Example 1

• Offer: Response by fax required.
• Acceptance: Hand-delivered Wednesday, received Thursday.
  • Effective upon receipt Thursday due to unauthorized delivery.

Example 2

• Offer: Response by fax required.
• Acceptance: Sent by fax Wednesday.
  • Effective when sent due to authorized means.

Tips for Application

• Create hypothetical scenarios.
• Carefully determine and apply the rule for effective timing.

Conclusion

• Final Advice: Practice with examples to solidify understanding.
• Exam Preparation: Focus on rules and their application to hypothetical cases.