World Post Day & The Mailbox Rule
Happy World Post Day! You might be wondering why today, October 9, a day celebrating the Universal Postal Union and the importance of postal services worldwide, could possibly matter to your bar exam preparation. Well, as it turns out, it’s the perfect opportunity to talk about one of contract law's most well-known rules: the Mailbox Rule.
Simply put, the Mailbox Rule states that an acceptance of an offer becomes effective once it is properly mailed—not when it is received by the other party.
For example: Alice offers to sell Bob her guitar. Bob mails his acceptance on Monday. On Wednesday, Alice changes her mind and sends a letter revoking the offer. Alice receives Bob's acceptance on Thursday.
Under the Mailbox Rule, Bob's acceptance was effective the moment it was mailed on Monday, before Alice's revocation was mailed or received. That means Alice and Bob are bound to the contract, even though Alice didn't get the acceptance until after she tried to revoke the offer.
Understanding the Mailbox Rule is important for both contract law and multiple-choice questions on the bar exam. This rule is often tested because it raises key issues about timing and communication, especially in an era where instantaneous communication is now the norm.
Here are some important points you need to know about the Mailbox Rule:
✅ General Rule: Acceptance is effective once it is properly dispatched (i.e., put in the mailbox or sent by a reasonable means of communication, such as email or fax), not when it is received by the offeror.
✅ Application: If an offeror sends an offer and the offeree accepts by mail (or similar means), the contract is formed at the moment the offeree dispatches the acceptance. This means that if the acceptance is lost in the mail and never received, a contract may still be valid.
✅ Exceptions: Of course, as with most rules of law, there are several exceptions to the Mailbox Rule. Here are some notable exceptions:
⚠️ Option contracts: The mailbox rule does not apply to option contracts. In such cases, the acceptance is effective only upon receipt by the offeror.
⚠️ Revocation received first: If the offeror revokes the offer and the revocation is received before the acceptance is mailed, the offer is terminated.
⚠️ Improperly addressed or postage missing: If the acceptance is not properly addressed or postage is missing, the mailbox rule does not apply and acceptance is effective only when received by the offeror.
⚠️ Instantaneous communications: For instantaneous forms of communication (like phone calls or face-to-face offers), the mailbox rule does not apply. Acceptance is effective upon receipt.
✅ Rejections and Counteroffers: If the offeree sends a rejection or a counteroffer first, and then sends an acceptance, the first one to be received by the offeror will govern. (If the offeror receives the rejection before the acceptance, then there is no contract. If they receive the acceptance first, the contract is formed.)
The mailbox rule is a favorite topic on the bar exam in questions involving contract formation scenarios. Pay special attention to timing and modes of communication in multiple-choice and essay questions. Focus on whether the acceptance was dispatched properly and whether any exception to the rule applies.
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