Restatement (Second) of Contracts · Section § 63
This section addresses the timing and manner of acceptance in contract formation, particularly focusing on the role of the postal service.
Source: Restatement Restatement (Second) of Contracts § § 63
An acceptance made in a manner and by a medium invited by the offer is effective upon dispatch.
When an offer specifies a particular way to accept, if the acceptance is sent that way, it becomes effective when it is sent, not when it is received. This means that as soon as you mail your acceptance, it is legally binding, even if the offeror has not yet seen it.
Acceptance is effective upon dispatch when the offeree uses the means of communication requested by the offeror.
If the offer does not specify a method of acceptance, any reasonable means may be used.
Illustration 1
If an offeror indicates acceptance should be sent by mail, the acceptance is effective once it is placed in the mailbox.
Illustration 2
If a seller offers to sell goods and states that acceptance 'can be made by email,' sending an email constitutes effective acceptance once it is sent.
This case established the mailbox rule, illustrating that an acceptance is effective when sent, which aligns with the principles laid out in Section 63.
This case demonstrated that acceptance can be valid even without communicating back to the offeror if the conditions of the offer are fulfilled.
Understanding Section 63 is crucial for parties in contract negotiations, as it clarifies when an agreement is deemed legally binding. This can affect strategies in negotiation and timing of deliverables in business transactions.