What is the mailbox rule

The "mailbox rule" is a legal principle that states that a contract is formed when an offer is accepted, and the acceptance is communicated to the offeror (the person making the offer) through a reliable means, such as a letter or email, even if the acceptance is not received by the offeror until later.

In other words, the mailbox rule holds that a contract is formed when the acceptance is placed in the mail or sent electronically, and the risk of loss or delay in transmission is shifted to the postal service or the internet service provider. This means that the contract is considered to be formed at the time the acceptance is sent, rather than when it is received by the offeror.

The mailbox rule is often used in situations where a contract is formed through a written offer and acceptance, such as in the sale of goods or real estate. For example, if a buyer sends an acceptance letter to a seller, and the letter is placed in the mail, the contract is considered to be formed at that point, even if the seller does not receive the letter until several days later.

The mailbox rule is based on the idea that the risk of loss or delay in transmission should be borne by the party who is responsible for sending the acceptance, rather than the party who is receiving it. This rule helps to ensure that contracts are formed in a timely and reliable manner, and that disputes over the formation of a contract are minimized.

Here are some key points to keep in mind about the mailbox rule:

  1. The mailbox rule applies to written offers and acceptances, such as letters or emails.
  2. The rule holds that a contract is formed when the acceptance is placed in the mail or sent electronically, not when it is received by the offeror.
  3. The risk of loss or delay in transmission is shifted to the postal service or internet service provider.
  4. The mailbox rule is often used in situations where a contract is formed through a written offer and acceptance, such as in the sale of goods or real estate.
  5. The rule helps to ensure that contracts are formed in a timely and reliable manner, and that disputes over the formation of a contract are minimized.