In short
Under the mailbox rule, an acceptance sent by an authorized means is effective when it is sent, even if it is delayed or lost. Revocations of offers and rejections take effect only when received.
Key takeaways
- The offer can override the rule by requiring that acceptance be received.
- If the offeree sends a rejection and then an acceptance, whichever arrives first wins.
- An option contract's acceptance is effective only when received.
Where it's tested
REG: Business Law: Contracts — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
On June 1, a merchant seller mails an offer to sell goods. On June 3, the seller mails a revocation. On June 4, the buyer mails an acceptance. On June 5, the buyer receives the revocation. Is there a contract?