Question

James was discharged by MegaCorp. He received a letter from MegaCorp offering to pay him

double the usual severance pay if he signed a document releasing MegaCorp from all claims he

might have had. James signed and dated the release and put it in a mailbox outside the post

office. When he returned home, he found he had received a check from MegaCorp in the same

amount as offered in the letter. He then returned to the post office, persuaded a postal employee

to open the mailbox and retrieved the release. He cashed the check and then filed an age

discrimination suit against MegaCorp. Was a contract formed when James put the release in the

mailbox?

answer using  pertinent contractual concepts

Answer 1

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Was a contract formed when James put the release in the mailbox?

Yes, a contract was formed when James put the release in the mailbox.

If Watten sues the Sillimans for the extra $5000, what is the result?

Watten will not be able to get the extra $5000 because their no agreement showing such an agreement apart form the original contract price they have.

Can he rescind the contract?

No, he can not rescind the contract.

Can Dax disaffirm?

Yes, Dax can disaffirm the contract.

Advise Sara

Sara can not be able to sue Olson for breach of contract.

Explanation:

Was a contract formed when James put the release in the mailbox?

Yes, a contract was formed when James put the release in the mailbox.

According to the mailbox rule an offer is considered accepted once they are on dispatch (when they are mailed). Given that James signed, dated and released the document to the mailbox, a contract was formed. According to the mailbox rule the , acceptance is effective as soon as it is mailed.However, the contract can not be enforceable because the offeror (MegaCorp) did not receive the acceptance document since James retrieved it. An enforceable contract is formed when the offeror receives the acceptance document from the offeree.

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