The mailbox rule is an exception to the general rule that a contract is not formed until acceptance is communicated, and protects those who have sent a written offer of agreement and assume to have entered into a contract. The mailbox rule states that acceptance of an offer is effective upon dispatch, not upon receipt.
Why Is the Mailbox Rule Used?
As business processes move faster and faster, it is sometimes necessary to make decisions quickly and assume that an agreement (or contract) has been reached on the same terms even if the acceptance has not yet been confirmed. The mailbox rule ensures that an offeror is not disadvantaged by the speed of the process, and that they will not be worse off through the increased speed of doing business.
Modern Examples of the Mailbox Rule
The mailbox rule is particularly important in ecommerce. Many modern contracts are made online, such as on the platforms of Amazon, eBay, Etsy, et cetera, and many of these contracts are formed without any written communication. Similarly, a webshop checkout process is typically accepted as binding, even if the payment is made without any written communication. In both these cases, the mailbox rule provides the legal basis for the contract.
Conclusion
The mailbox rule is an important exception to the general requirement for contracts to be formed, and allows modern businesses to transact in a fast-paced environment without fear of breaching the law. Businesses eager to fast track contracts must always be sure of the precise conditions of the offer and should always double-check whether any conflicting information on either side has been received before assuming that the contract is bound.