If the offeree rejects the offer, the offer has been destroyed and cannot be accepted at a future time. A case illustrative of this is Hyde v. Wrench (1840) 49 E.R. 132, where in response to an offer to sell an estate at a certain price, the plaintiff made an offer to buy at a lower price. This offer was refused and subsequently, the plaintiffs sought to accept the initial offer. It was held that no contract was made as the initial offer did not exist at the time that the plaintiff tried to accept it, the offer having been terminated by the counter offer.
This letter was delayed in the mail and was received by IBM on July 25th at 9:30 am.
A rejection is effective when received so the offer was still effective for acceptance unit July 25th
On July 23rd, IBM changed its mind and at 9:00 am the same day mailed a letter to Hometown stating that IBM had sold the equipment to a third party.
The offeror is the master of the offer and can withdraw it at any time. However, the withdrawal must be communicated to the offeree. An offeror may revoke an offer before it has been accepted, but the revocation must be communicated to the offeree, although not necessarily by the offeror: Dickinson v. Dodds (1876) 2 Ch.D. 463. Therefore the offer was withdrawn on July 24 at 10.
Issue: Was the fax an acceptance and was a contract formed.
The mailbox rule excludes contracts involving land, letters incorrectly addressed and instantaneous modes of communication. The fax was received
July 24th at 11:00 am. Therefore the offer had been withdrawn at 10 and there was no contract formed.
You have to analyze each transaction to see the effect and state the rule for that transaction