Question

What is the purpose for the Mailbox Rule? Who does it punish? Offeror or Offeree?

Answer 1

Mailbox rule is associated with the contract law which states that acceptance of an offer is considered when communicated. In this rule, the acceptance is made by the offeree which is sent to the offeror by mail. The rule says that an acceptance is effective upon dispatch and a rejection is effective upon receipt. Under this rule, a contract has been formed when the letter of acceptance is placed in the mailbox. The offeree has no right to withdraw the acceptance because the contract has been made when the acceptance is mailed.

Mailbox rule would punish the offeror when he has no ability to fulfil the contract.

For example- you offer to sell me your watch worth S1000. I then drop you a acceptance letter for the offer made by you and a check of $1000. This results in a contract as soon as I drop the letter in the mail.

Steps include-

1. Offer sent by mail.

2. Offer received.

3. Acceptance sent by mail.