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Author Topic: Mailbox Rule  (Read 3138 times)

LULAW1982

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Mailbox Rule
« on: May 19, 2009, 03:22:51 PM »
What happens if offeree sends his valid acceptance in the mail but then sends a valid revocation the very next day?  I think that whichever one arrives first counts, but I am not sure. 

Matthies

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Re: Mailbox Rule
« Reply #1 on: May 19, 2009, 03:31:28 PM »
What happens if offeree sends his valid acceptance in the mail but then sends a valid revocation the very next day?  I think that whichever one arrives first counts, but I am not sure. 

Yes, but besure to talk about detrimental relaince as well, offeror recives rejetion first, detimentally relies on that, then gets accepatnce = no contract. Remeber also mailbox rule applie  (vaild on dispatch) only applies to accepatnce, not other K things like rejection or revocation.
*In clinical studies, Matthies was well tolerated, but women who are pregnant, nursing or might become pregnant should not take or handle Matthies due to a rare, but serious side effect called him having to make child support payments.

Changed Name

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Re: Mailbox Rule
« Reply #2 on: May 19, 2009, 06:28:00 PM »
Um.. This was was first semester contracts for me, but under the mailbox rule, isn't an acceptance considered "good" once the mail has been sent (that is, it doesn't need to reach the offeror before it becomes effective)?

If that is the case, then once the offeree has sent the acceptance, a contract has formed.  Depending on the terms of the contract, the offeree isn't usually allowed to revoke his acceptance.  In general, you can't "revoke" an acceptance.  At least, that's my understanding.  I don't think it has anything to do with whichever arrives first.

Matthies

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Re: Mailbox Rule
« Reply #3 on: May 19, 2009, 06:45:40 PM »
Um.. This was was first semester contracts for me, but under the mailbox rule, isn't an acceptance considered "good" once the mail has been sent (that is, it doesn't need to reach the offeror before it becomes effective)?

If that is the case, then once the offeree has sent the acceptance, a contract has formed.  Depending on the terms of the contract, the offeree isn't usually allowed to revoke his acceptance.  In general, you can't "revoke" an acceptance.  At least, that's my understanding.  I don't think it has anything to do with whichever arrives first.

Yea, I think unless the rejection arrives first and Offeror detrimentally relies on it, then no contract. If rejection arrives first and offeror does nothing (like still has the product to sell but did not actually sell it someone else) then K formed at dispatch. Hence why you got to analyze detrimental reliance fist to see if mailbox rule applies or not, no detrimental relance then mailbox rule applies and = K, rejection + detrimental realince before accepatnce arrives no mailbox rule.
*In clinical studies, Matthies was well tolerated, but women who are pregnant, nursing or might become pregnant should not take or handle Matthies due to a rare, but serious side effect called him having to make child support payments.

ILEARNEDGOODSTUFF

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Re: Mailbox Rule
« Reply #4 on: May 19, 2009, 08:35:46 PM »
Plainly stated. the MAILBOX RULE states that whatever is SENT first is what is valid. further your use of revocation does not makes sense in this case. the offeree cannot "revoke." he can reject the offer, but cannot revoke the offer because he is not the offeror. Once the acceptance is put in the mail the contract is valid given there is sufficient consideration. the so called "revocation" is actually a "breach." the offeree is breaching the contract by telling the offeror that he is not going to fulfill the agreement. 

,.,.,.;.,.,.

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Re: Mailbox Rule
« Reply #5 on: May 19, 2009, 08:42:41 PM »
The mailbox rule says that an offer is accepted when posted.  (Morrison)  Because the party accepted the offer by posting it, they are no longer free to reject the offer -- and, as others have pointed out, they never had the right to revoke it.

Parties rely on an objective standard of intent.  (Embry)  Therefore, there should be a valid contract, even if there is no subjective mutual assent by the rejecting party.  If the rejection letter arrives right after the acceptance letter, however, then you may have a firm offer.  In that case, two rules may govern.  The first is that there has been reliance by the offeror and the contract should go forward as planned.  (Drennan)  The second is that, because of an honest mistake, the acceptor can still rebut his acceptance.  (James Baird)

Matthies

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Re: Mailbox Rule
« Reply #6 on: May 21, 2009, 06:01:18 PM »
Plainly stated. the MAILBOX RULE states that whatever is SENT first is what is valid.

Wait though, I thought Mailbox rule only applies to acceptances. Under the rule an acceptance is binding upon dispatch. But that does not apply to rejections or counter offers or anything else, those are all effective upon recite by the intended party. So you could send a rejection then next day change your mind and send an accpetatce, the latter being effective on dispatch ever though it was sent later. Right? 
*In clinical studies, Matthies was well tolerated, but women who are pregnant, nursing or might become pregnant should not take or handle Matthies due to a rare, but serious side effect called him having to make child support payments.

LULAW1982

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Re: Mailbox Rule
« Reply #7 on: May 21, 2009, 06:28:51 PM »
Here is what I have found:

1.  Acceptance effective upon dispatch
2.  Revocation effective upon receipt
3.  Rejection of the offer effective upon receipt

The only way a revocation or rejection of the offer will supersede an acceptance letter put into the mail is when the offeror detrimentally relies upon the revocation or rejection.