Contracts and Sales Multistate Bar Practice Exam

What is the mailbox rule regarding acceptance?

1. Acceptance is effective upon receipt

2. Acceptance is effective upon mailing if properly addressed

3. Acceptance is never effective until expressly stated

4. Acceptance invalidates previous rejections

The correct answer is: Acceptance is effective upon mailing if properly addressed

The mailbox rule dictates that an acceptance of an offer is effective when it is dispatched or mailed, provided the acceptance is sent through an appropriate means and properly addressed. This rule is rooted in the principle that once the offeree puts the acceptance in the mail, they have completed their part of the contract formation process, and the offeror must honor that acceptance as it is considered legally binding at that moment. This principle allows for fairness by preventing the offeror from potentially manipulating the situation based on when they receive the acceptance. It also allows for efficient communication in contract formation. Consequently, as long as the acceptance meets the criteria of being properly addressed and sent in an acceptable manner (like postal service), it is effective as soon as it is mailed, regardless of when the offeror actually receives it. The other options do not accurately reflect the mailbox rule. The notion that acceptance is effective upon receipt pertains to a different scenario, particularly when parties are dealing with instantaneous communication methods. The option stating that acceptance is never effective until expressly stated contradicts the foundational concept of effective communication in contract law. Lastly, the idea that acceptance invalidates previous rejections does not directly relate to the mailbox rule; rather, it discusses the relationship between acceptance and rejection in the context of