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lwpat, Attorney
Category: Business Law
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Contract law question. Are there any precedents for a rejection

Resolved Question:

Contract law question. Are there any precedents for a rejection of a contract via the mail box rule? Or does the mailbox rule only apply to an acceptance?
Submitted: 5 years ago.
Category: Business Law
Expert:  lwpat replied 5 years ago.
There is a difference

Revocation is effective on receipt, not on dispatch. Restatement § 42: “An offeree’s power of acceptance is terminated when the offeree receives from the offeror a manifestation of an intention not to enter into the proposed contract.” “Rejection or counter-offer by mail or telegram does not terminate the power of acceptance until received by the offeror…” Restatement § 40. The legal consequence of rejection lies in the probable effect on the offeror. If the offeree states that he declines the offer, it’s very likely that the offeror will change his plans. The offeror can’t change his plans until he’s aware of the rejection.
See Adams v. Lindsell for the mailbox rule
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