Mailbox Rule for Contracts

The video tutorial explains the essential elements of a contract, focusing on the offer and acceptance. It introduces the mailbox rule, which determines when acceptance is effective, especially when the offer does not specify terms of acceptance. The rule states that acceptance is effective once it is placed in the mailbox. This becomes crucial when multiple offers are made, as the first acceptance sent by mail is binding, even if another acceptance is received first.

What is required for a contract to be valid according to the initial explanation?

• Neither offer nor acceptance is needed.

• Both offer and acceptance are needed.

• Only acceptance is needed.

• Only an offer is needed.

When does acceptance become effective under the mailbox rule?

• When the offeror receives the acceptance.

• When the acceptance is written.

• When the offeror reads the acceptance.

• When the acceptance is placed in the mailbox.

What happens if an offer is made to multiple people and one person mails their acceptance?

• The acceptance mailed first is valid.

• The offeror can choose any acceptance.

• All acceptances are invalid.

• The first acceptance received is valid.

In the context of the mailbox rule, what power does the offeror lose once an acceptance is mailed?

• The power to negotiate further.

• The power to accept another offer.

• The power to change the offer terms.

• The power to revoke the offer.

Why is the mailbox rule significant in contract law?

• It allows for verbal agreements.

• It simplifies the acceptance process.

• It ensures acceptance is immediate upon mailing.

• It requires acceptance to be in writing.