Asked by Grace Hummel on May 07, 2024
Verified
What is the "mailbox rule"? What risk does it create for the offeror?
Mailbox Rule
A legal doctrine stating that an offer is considered accepted at the time the acceptance is sent via the mail or other delivery method.
Risk
In law and business, risk refers to the exposure to potential loss or damage arising from various factors like legal liabilities or financial transactions.
Offeror
An offeror is a person or party who presents a conditional proposal to enter into an agreement with someone, known as the offeree, which becomes legally enforceable if accepted by the offeree.
- Comprehend the relevance and use of the Mailbox Rule in establishing contracts.
Verified Answer
ST
Sergio TerreroMay 13, 2024
Final Answer :
Under the mailbox rule,properly addressed and dispatched acceptances can become effective when they are dispatched,even if they are lost and never received by the offeror.The mailbox rule protects the offeree's reasonable belief that a binding contract was created when the acceptance was dispatched.By the same token,it exposes the offeror to the risk of being bound by an acceptance that she has never received.
Learning Objectives
- Comprehend the relevance and use of the Mailbox Rule in establishing contracts.